Introduction to Stablecoins
Understand the applications and functions of a stablecoin
About the course
In May 2022, one of the largest stablecoins, Terra’s USD, a cryptocurrency whose value is designed to remain stable at $1 collapsed and lost investors $18 billion dollars.
Stablecoins have become a key pillar in the world of decentralised finance, providing investors with stable crypto assets that are protected from volatility due to assumption that their value is pegged to the dollar. With the collapse of UST however, this assumption has now been broken.
There is a clear need for everyone in finance to understand more about these digital assets. What are they? Who uses them? How do they work? And what are their risks?
This short course will guide you through the noise and provide you with the right foundation to understand the world of stablecoins.
It explains how the two main types of stablecoins work, the risks and regulatory considerations, and details the differences between 10 stablecoins: Tether / USDC / Binance USD / Dai / TrueUSD / Pax Dollar / Neutrino / Frax / Magic Internet Money and of course Terra USD. It also compares collateral-based stablecoins to money market funds, a financial product that has been around for 50 years.
Difficulty: Foundation
Duration: 60mins
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With this online course, you will:
- Understand what stablecoins are
- Discover who uses stablecoins, and why
- Understand the variety of mechanisms of how stablecoins work
- Learn about the main regulatory and risk considerations
Skills
Cryptocurrency
Blockchain
Stablecoins
Decentralised Finance
Fintech
The expert you’ll be learning from
Huy Nguyen Trieu
Co-Founder, CFTE
Huy Nguyen Trieu is the Co-Founder of CFTE. He is also the CEO of The Disruptive Group, a business builder and advisory firm in innovation and finance, and Venture Partner at Mundi Ventures, an early-stage VC fund in Fintech and Insurtech. He believes that in a world led by technology, we shouldn’t forget the importance of people, which is why he co-founded CFTE to help people improve their skills and find opportunities.
Prior to setting up CFTE, Huy was a Managing Director at Citi, and previously at Royal Bank of Scotland and Société Générale. Before banking, he was the CEO of Ukibi, a VC-funded startup in the US. He is a frequent keynote speaker in Europe and Asia, likes to teach and share with students and entrepreneurs, and is regularly quoted in articles on innovation and finance. He writes the blog Disruptive Finance, is an Entrepreneurship Expert at Oxford Said Entrepreneurship Centre and a Fintech Fellow at the Centre for Global Finance and Technology at Imperial College. He was also a member of ESMA’s Consultative Working Group for financial innovation and a founding member of the Asian SuperCharger, one of the largest Fintech accelerators in Asia. Huy is a graduate from MIT (US), École Polytechnique (France) and Ecole des Ponts et Chaussees (France).
Course Content
In the first chapter, you will learn what exactly is a stable coin and how far stable coins have come, from the launching of the first stable coin to the downfall of Terra, UST. You will learn the different types of stable coins and how each of them are linked to different asset classes. You will also gain a deeper understanding of the whole stable coin market and how it measures against the whole crypto market.
In the next chapter, you will firstly understand the risk profile of a stable coin, how it fares among other asset classes based on liquidity and risk levels. You will also learn what are the different applications of stable coins.
In the last chapter, you will learn how money market funds(MMF) work and how they are being hedged. You will understand the objectives of the fund managers and how these MMF are regulated. You will then be able to understand the similarities between stable coins and MMF by looking at the disclosure between a collateralized stable coins and a MMF
In this chapter, we will explore the various applications and functions of stable coins. We will discuss how stable coins can be used in decentralised finance and how they can be used to facilitate transactions. We will also examine the potential for stable coins to disrupt traditional finance and the potential risks and challenges that may arise. By the end of this chapter, you will have a comprehensive understanding of the ways in which stable coins can be used and the potential impacts they may have on the market.
In conclusion, stable coins are an exciting and rapidly evolving aspect of the world of cryptocurrencies. In this course, we have explored the various types of stable coins, the mechanisms behind their pegging, and the various applications and functions they can serve. By the end of this course, you will have a solid understanding of stable coins and be able to apply this knowledge to your own investments and professional pursuits.
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