# Crypto-collateralised stablecoin

A stablecoin created against crypto-asset collateral locked in a protocol, for example GHO, which Aave describes as over-collateralised.

Canonical: https://achivx.org/glossary/crypto-collateralised-stablecoin/
Updated: 2026-11-01

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](https://aave.com/docs/ecosystem/gho) |
| 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](https://aave.com/docs/ecosystem/gho) |
| 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](https://www.bis.org/publ/arpdf/ar2025e3.htm) |
| 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](https://www.fsa.go.jp/inter/etc/20221207/01.pdf) |

## Related terms

- [Stablecoin](/glossary/stablecoin/)
- [Fiat-backed stablecoin](/glossary/fiat-backed-stablecoin/)
- [Synthetic dollar (delta-neutral)](/glossary/synthetic-dollar/)
- [Mint](/glossary/mint/)

## See also

- Explainer: [What is the difference between DAI and USDS — and what are sDAI and sUSDS?](https://achivx.com/academy/how-it-works/what-is-dai-vs-usds.html)
- Review: [revain.org/coins/dai/](https://revain.org/coins/dai/)
- Review: [revain.org/coins/usds/](https://revain.org/coins/usds/)
- Review: [revain.org/coins/gho/](https://revain.org/coins/gho/)

Checked against the sources on 2026-11-01.

## revain.org
- https://revain.org/coins/dai/
- https://revain.org/coins/usds/
- https://revain.org/coins/gho/

## Sources
- https://aave.com/docs/ecosystem/gho
- https://www.bis.org/publ/arpdf/ar2025e3.htm
- https://www.fsa.go.jp/inter/etc/20221207/01.pdf