Category

Stablecoin Settlement

These terms cover issuance, redemption, reserves, and the target price peg.

How to recognize this theme

Terms used when dollar-linked tokens are issued and redeemed.

In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.

Educational context

These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.

Mint

Minting is the act of creating new stablecoins or other tokens under the rules of a system.

Redeem

Redemption is the process of exchanging a token for the asset or value that backs it.

Reserves

Reserves are assets kept aside to support redemptions or maintain confidence in a token's value.

Peg

A peg is the target price relationship a stablecoin tries to hold against a reference asset.

Mint

Minting creates new stablecoins or tokens according to the protocol's rules.

Redeem

Redeeming swaps a token back for its backing asset or settlement value.

Reserve

Reserves are assets held to support redemptions or maintain a stablecoin's target value.

Depeg

A depeg happens when a stablecoin trades meaningfully away from its intended reference price.

Mint

To mint is to create new tokens or coins, usually according to the rules of a protocol or issuer.

Reserve

Reserves are assets held to support redemptions or help maintain confidence in a stablecoin.

Redemption

Redemption is the process of exchanging a token for the asset or value it is meant to represent.

Peg

A peg is the target value a stablecoin or currency arrangement tries to maintain.

Reserve Ratio

Reserve ratio describes how much backing is held relative to the amount of a stablecoin in circulation.

Proof of Reserves

Proof of reserves is a report or process meant to show that an issuer or custodian holds the assets it claims to hold.

Redemption Window

A redemption window is the period when holders can exchange a token for the referenced asset or backing.

Peg Band

A peg band is the range around a target price where a stablecoin is still considered close to its peg.

Reserve Proof

A reserve proof is evidence that backing assets exist for a stablecoin or similar claim.

Mint

Minting issues new stablecoins or tokens under the protocol's rules.

Redeem

Redeeming returns a token for the underlying asset or claim value.

Settlement Finality

Settlement finality is the point when a transfer is no longer expected to be reversed.

Reserve Asset

A reserve asset is a liquid asset held to support redemptions or token value.

Attestation

An attestation is a report that verifies reserves or other claims at a point in time.

Redemption Window

A redemption window is the period during which tokens can be converted back into value.

Peg Drift

Peg drift is a small move away from a token's target value before a larger depeg.

Reserve Asset

A reserve asset is a holding used to back issued tokens or other obligations.

Attestation Audit

An attestation audit is a formal check that reports what backing assets are present.

Fiat Rail

A fiat rail is the banking or payment path used to move cash in or out.

Redeem Flow

A redeem flow is the process that converts tokens back into the backing asset.

Settlement Batch

A settlement batch groups multiple transfers or payment instructions so they can be processed and reconciled together.

Redemption Instruction

A redemption instruction tells an issuer or platform to convert stablecoins into the supported settlement asset under its rules.

Payment Reconciliation Record

A payment reconciliation record links expected payments with observed transfers, balances, invoices, or bank settlement records.

Final Settlement State

A final settlement state means a payment or transfer is treated as complete according to the relevant network or operating rules.

Mint and Redeem

Mint-and-redeem is the primary mechanism many fiat-backed stablecoins use: authorized parties deposit backing assets to mint tokens and burn tokens to redeem the backing assets.

Redemption Window

A redemption window is the time frame when an issuer, venue, or system processes redemptions, which can affect liquidity needs and settlement predictability.

Liquidity Buffer

A liquidity buffer is a pool of readily available assets held to meet redemptions, withdrawals, or settlement spikes without forcing fire-sale liquidations.

Stableswap Curve

A stableswap curve is an automated market maker design optimized for trading assets that should stay near the same value (like stablecoins), typically aiming for low slippage around the peg.