# Fiat-backed stablecoin

A stablecoin that references a fiat currency and is backed by reserve assets such as deposits and short-term government debt.

Canonical: https://achivx.org/glossary/fiat-backed-stablecoin/
Updated: 2026-11-01

A fiat-backed stablecoin references a national currency and is backed by reserve assets held for it. Brazil's central bank defines the 'fiat-referenced virtual asset' as backed by reserve assets to keep its value tied to a reference fiat currency. Tether states each token is 100% backed by Reserves of cash, cash equivalents and other assets, possibly including loan receivables; Circle lists bank deposits, Treasury repo and short-dated Treasuries for USDC. The BIS treats 'fiat-backed' as a distinct category.

## What the sources say

| Source | Quote | Link |
|---|---|---|
| BCB Resolution 520, Art 2: definition of fiat-referenced virtual asset (stablecoin) | "ativo virtual referenciado em moeda fiduciária ( stablecoin ): o ativo virtual lastreado em ativos de reserva criado com o propósito de manter seu valor vinculado ao valor de uma moeda fiduciária de referência" | [bcb.gov.br](https://www.bcb.gov.br/estabilidadefinanceira/exibenormativo?tipo=Resolu%C3%A7%C3%A3o%20BCB&numero=520) |
| Tether terms: backing of Tether tokens | "Each Tether Token in circulation is 100% backed by an amount of assets (“ Reserves ”) equal to the stated value of the Tether Token." | [tether.to](https://tether.to/en/legal/) |
| Tether terms: composition of Reserves | "The Reserves are comprised of cash, cash equivalents and other assets and may include loan receivables and other assets from Affiliates." | [tether.to](https://tether.to/en/legal/) |
| Circle transparency page: USDC reserve categories | "Reserves Other Bank Deposits 1 Deposits at Systemically Important Institutions 2 Overnight Reverse Treasury Repo 3 <3-Month Treasuries 3" | [circle.com](https://www.circle.com/transparency) |
| 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) |

## Related terms

- [Stablecoin](/glossary/stablecoin/)
- [Reserve / reserve assets](/glossary/reserve-assets/)
- [Reserve attestation](/glossary/reserve-attestation/)
- [Redemption](/glossary/redemption/)
- [Issuer](/glossary/issuer/)

## See also

- Explainer: [How do Tether and Circle say USDT and USDC are backed?](https://achivx.com/academy/issuers/how-are-usdt-and-usdc-backed.html)
- Review: [revain.org/coins/usdt/](https://revain.org/coins/usdt/)
- Review: [revain.org/coins/usdc/](https://revain.org/coins/usdc/)
- Review: [revain.org/coins/eurc/](https://revain.org/coins/eurc/)
- Review: [revain.org/coins/pyusd/](https://revain.org/coins/pyusd/)
- Review: [revain.org/coins/fdusd/](https://revain.org/coins/fdusd/)

Checked against the sources on 2026-11-01.

## revain.org
- https://revain.org/coins/usdt/
- https://revain.org/coins/usdc/
- https://revain.org/coins/eurc/
- https://revain.org/coins/pyusd/
- https://revain.org/coins/fdusd/

## Sources
- https://www.bcb.gov.br/estabilidadefinanceira/exibenormativo?tipo=Resolu%C3%A7%C3%A3o%20BCB&numero=520
- https://tether.to/en/legal/
- https://www.circle.com/transparency
- https://www.bis.org/publ/arpdf/ar2025e3.htm