#113 Untangling: The Stablecoin Age

In this episode, we explore the rise of stablecoins—the digital dollar alternatives that are reshaping how money moves in the age of crypto and Web3.

Once a niche financial tool, stablecoins are now processing trillions annually, attracting institutional players like PayPal and Stripe, and even overtaking Visa in transaction volume.

With new legislation like the U.S. GENIUS Act and regulatory clarity on the horizon, we unpack how these stable tokens are becoming foundational to the future of digital assets.

Key highlights:

• What Are Stablecoins and Why Are They Taking Off? Stablecoins—tokens pegged to fiat currencies like the U.S. dollar—and explain their appeal to both crypto traders and institutions. They discuss how these assets offer the technological benefits of blockchain (borderless, 24/7, transparent) without the volatility of traditional crypto. From powering over 70% of crypto trading volume to acting as a hedge in inflation-ridden economies, stablecoins are proving invaluable across multiple use cases.
• The Types of Stablecoins and How They Work: The episode dives into the different categories: fiat-backed (like USDC and USDT), crypto-collateralized (like DAI), and algorithmic (like the defunct Terra/LUNA). Alec and Jack explain how each type maintains its peg, the risks involved, and how new legislation is prioritizing transparency, 1:1 fiat reserves, and regulatory accountability—especially for the fiat-backed models favored by institutions. Circle's USDC, for example, is praised for regulatory compliance, while Tether faces continued scrutiny.
• The Regulation Revolution and Institutional Adoption: With the U.S. GENIUS Act now law and the CLARITY Act progressing through Congress, the regulatory landscape for stablecoins is rapidly maturing. The hosts highlight how these laws define rules for issuance, reserves, and oversight—giving stablecoins a green light to scale. Meanwhile, companies like PayPal, Revolut, and even JPMorgan are entering the stablecoin race, and firms are starting to pay salaries in digital dollars. This signals a huge shift in the way digital assets are used globally.

Stablecoins are no longer just a stepping stone into crypto—they are becoming a core layer of the Web3 financial stack.

With stronger regulation, massive adoption by tech-forward companies, and a user experience that rivals traditional finance, stablecoins could redefine how the world transacts.

As countries choose between stablecoins, CBDCs, and crypto-native currencies, one thing is clear: stable, programmable money is here to stay.

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This episode is sponsored by the VeChain foundation. Learn more about VeBetterDAO here:

https://vebetterdao.org/

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Learn more about Web3 at:

https://untanglingweb3.com/

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Untangling Web3 is brought to you by hosts Jack Davies and Alec Burns, with music by Daniel Paigge. Got a question or topic suggestion? Send us an email at [email protected].

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The views we express here are our own, and do not represent the views of our employers. Nothing discussed or stated in the show should be considered advice.