Stablecoin
A stablecoin is a digital token designed to track the value of a currency. USDT, a stablecoin designed to track the US dollar, is issued by a third party, and how closely it tracks the dollar depends on that issuer.
Target1 USDT to 1 US dollar, managed by the issuer
Settlement timeAbout 20 seconds
Cost to sendSet by the provider you send with. Fasset prices it per plan
Reserve modelSet and disclosed by the issuer, not by Fasset
How Fasset uses itAs a payment rail between accounts, so you see dollars in and dollars out
Do I need to understand stablecoins to use one?
Not really. USDT, a stablecoin designed to track the US dollar, settles in about 20 seconds. You see dollars in and dollars out, and the rail is handled inside the platform. More on how it fits into payments on the payments page.
Related terms
Glossary Safeguarding Why client funds are held separately at licensed institutions instead of on a company's own balance sheet, and how that differs from deposit insurance. Glossary Escrow Funds held by a neutral third party until both sides confirm the work is done, released by milestone. In development at Fasset. Glossary Mid-market rate The real exchange rate, no markup, the one on Google. Banks add 2 to 4% on top before they show you a number.
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Fasset Business gives businesses local currency accounts and modern rails. The application runs entirely online.
Client funds are held separately from Fasset’s own.