What is a stablecoin?

The collateral determines the value of the stablecoin. In this respect, they differ from cryptos such as Bitcoin, which are another digital medium of exchange. This collateral consists of assets or a basket of different types of assets, such as currencies or commodities. Euros, dollars, gold or copper are commonly used examples. Cryptos are generally not backed by any collateral. As a result, their value is often less stable than that of stablecoins.

What do people use stablecoins for?

Stablecoins are mainly used for buying and selling cryptos. Stablecoins often provide a solution in countries with underdeveloped or unreliable payment systems. A stablecoin transaction can be tracked fully online. 

Stablecoins are also popular for international payments, and transactions costs are significantly lower when it comes to intercontinental payments and cross-currency transactions.

How does a stablecoin work?

Before a stablecoin can be used, it must go through a number of initial stages, perhaps something like this:

Company X intends to issue a stablecoin. For every stablecoin the company issues, it must hold an equivalent amount of assets to match the value of the stablecoin. This is known as the ‘collateral value’. This could be an amount in dollars, or a commodity such as gold. This is how Company X pegs the value of its stablecoin to an external asset.

The company then launches the stablecoin on the market via a special network based on ‘Digital Ledger Technology (DLT)’. This is a type of online ledger in which all transactions are recorded. You can see who currently holds a stablecoin, if ownership changes hands, and when.  The new owner of the stablecoin will then be entitled to claim the underlying assets.

The value of the stablecoin issued via DLT is pegged to the value of the collateral. Provided the issuer of the stablecoin operates within the EU, the holder of the stablecoin can always recover their original investment from the issuer. The holder should then be able to have the money transferred to their own account effortlessly and at no extra cost.

If the holder does not want to exchange the stablecoin for fiat currency (regular money) but wants to hold onto it, they can store it in a special wallet. There are plenty of companies that offer wallets where people can store their crypto-assets, either for a fee or free of charge. An owner can use the wallet to sell their stablecoin to someone else. You can also make your own wallet.

Stablecoins can also be used for other kinds of digital transactions. You can buy other crypto-assets, including coins, on an exchange.

Are stablecoins permitted in the Netherlands?

Stablecoins are permitted in the Netherlands and are widely traded. In 2026, the global market for stablecoins was worth $300 billion, up from $30 billion five years previously. The most commonly used variants are stablecoins backed by US dollars. There are also stablecoins backed by euros, but these are comparatively rare. 

Are stablecoins subject to regulation?

In the European Union, the European Banking Authority (EBA) and the national supervisory authorities are responsible for regulating stablecoins. In the Netherlands, this is DNB. Companies wishing to launch a stablecoin in the EU must have a licence to do so. 

This does not mean that every stablecoin is subject to regulation. It is also possible to buy a stablecoin in the EU whose issuer is located elsewhere and does not hold a European licence. No rules, or different rules, apply to these stablecoins. For example, the right to recoup your original investment may not apply. Issuers must meet a number of requirements to get a European license. See this page to learn about the licensing process.

If you have a complaint or a concern you would like to share with us, please email us at info@dnb.nl.