Cryptocurrencies backed by currency (fiat) are the most common and were the first type of stablecoins on the market. Their characteristics are:
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Their value is pegged to one or more currencies (most commonly the US dollar, also the Euro and the Swiss franc).
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The tether is realized off-chain, through banks or other types of regulated financial institutions which serve as depositaries of the currency used to back the stablecoin.
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The amount of the currency used for backing of the stablecoin has to reflect the circulating supply of the stablecoin.