Stablecoins, RWA & Tokenization

What is a crypto-collateralized stablecoin?

A crypto-collateralized stablecoin is a stablecoin backed by other cryptocurrencies locked in a smart contract, rather than by cash or bank deposits. Because the backing assets are themselves volatile, these stablecoins usually hold more collateral than the coins they issue, a buffer that absorbs price swings. For example, a user might lock 150 dollars of Ether to mint 100 dollars of a stablecoin. DAI is a well-known example. This design keeps the system on-chain and transparent, but the peg still depends on the backing crypto staying valuable enough to cover the coins issued.