# Stablecoin
> A stablecoin is a digital token designed to track a currency. USDT is designed to track the US dollar and settles in about 20 seconds.
Canonical: https://fasset.com/business/glossary/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.

- **Target:** 1 USDT to 1 US dollar, managed by the issuer
- **Settlement time:** About 20 seconds
- **Cost to send:** Set by the provider you send with. Fasset prices it per plan
- **Reserve model:** Set and disclosed by the issuer, not by Fasset
- **How Fasset uses it:** As 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

- **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.
- **Escrow:** Funds held by a neutral third party until both sides confirm the work is done, released by milestone. In development at Fasset.
- **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.

## Open an account

Fasset Business gives businesses local currency accounts and modern rails. The application runs entirely online.

- Open an account
- See the demo

Client funds are held separately from Fasset’s own.