Crypto-collateralised stablecoin
A crypto-collateralised stablecoin is created against other crypto-assets locked as collateral in a protocol, rather than against fiat reserves held by an issuer. For example, Aave describes GHO as over-collateralised: users supply approved collateral and borrow GHO against it, following over-collateralisation practices. The BIS counts 'crypto-backed' stablecoins as their own category. Japan's FSA classifies 'non-redemption stablecoins (e.g., DAI)' as crypto-assets, the same category as Bitcoin.
What the sources say
| Source | Quote | Link |
|---|---|---|
| Aave docs: GHO is over-collateralised | "GHO (pronounced go) is a decentralized, over-collateralized stablecoin that is fully backed, transparent, and native to the Aave Protocol." | aave.com |
| Aave docs: how GHO is minted against collateral | "Users can mint GHO by supplying approved collateral assets into the Aave Protocol and borrowing GHO against them. This process follows standard over-collateralization practices" | aave.com |
| BIS Annual Economic Report 2025, ch. III, graph note: stablecoin categories | "It includes 34 fiat-backed, 29 crypto-backed, 11 commodity-backed and nine algorithmic stablecoins." | bis.org |
| Japan FSA (2022): classification of non-redemption stablecoins | "Other self-claimed stablecoins, such as algorithmic stablecoins (e.g., Terra) and non- redemption stablecoins (e.g., DAI), are categorized in the same regulatory category (“Crypto Assets”) as Bitcoin in Japan." | fsa.go.jp |
Related terms
See also
- Explainer: What is the difference between DAI and USDS — and what are sDAI and sUSDS?
- Review: revain.org/coins/dai/
- Review: revain.org/coins/usds/
- Review: revain.org/coins/gho/
Checked against the sources on 2026-11-01.