Encyclopedia Stablecoins · Entry 27
A stablecoin peg is a target; its market price is a trade
In this article
At a glance
Key facts
Compare the peg, traded price and exit proceeds
A one-dollar peg is the intended reference value. A secondary-market quote is the price available for a trade at that venue and moment. Direct redemption is a separate issuer or protocol process with eligibility and cost conditions.
If 1,000 tokens trade at $0.99, the gross sale value is $990 before fees. An eligible holder’s contractual redemption route may have a different value and timing. Neither number can be substituted for the other without stating which route the holder can actually use.
An illustrative arbitrage has costs and a clock
Suppose an eligible trader can buy 10,000 tokens for $9,950 and redeem them for $10,000. The apparent spread is $50. If exchange fees, transfers and redemption together cost $30, the modeled margin is $20 before financing costs, taxes or execution changes. Those numbers are illustrative, not a current quote or an issuer fee schedule.
If the route takes two days or a redemption request may fail, that $20 is not a risk-free profit. Purchases and redemptions can pull prices toward the peg when the route works; their existence does not prove that enough capital will use it at every moment.
Measure the deviation in the correct unit
For a dollar target, a price of $0.98 is a 2% discount: (0.98 / 1 − 1) × 100. For a euro target, compare against one euro, not one dollar. Also name the venue, time, quote currency and trade size. A tiny last trade can be very different from the proceeds of selling a large position.
A deviation is an observation, not a diagnosis. Depegging requires asking whether the cause is local liquidity, blocked settlement, impaired backing or another failure. An eventual return to par is a possible outcome, never something the target alone establishes.
Direct answers
Questions people ask
Can two exchanges show different stablecoin prices?
Yes. Their liquidity and available transfer or redemption routes can differ, and the issuer does not set every third-party quote.
Does $0.99 prove one percent of the reserve is missing?
No. Market prices can reflect access costs, uncertainty and liquidity as well as beliefs about backing.
Inspect the evidence
The answer and key facts have stable claim links. These records retain the scope and qualification when reused.
A stablecoin peg is its intended reference value; its market price is the amount buyers and sellers currently exchange on a particular venue. Redemption arbitrage can connect the two, but fees, eligibility, delays and uncertainty can prevent the price from matching the target.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T18:26:58.075Z.
Link to this claimPeg: A reference target, such as one token to one dollar.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T18:26:58.075Z.
Link to this claimQuote: A venue-specific exchange price, not an issuer payout promise.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T18:26:58.075Z.
Link to this claimArbitrage: Requires an executable route and must cover its costs.
Scope: Stablecoins · data through 2026-10-02. Verification: verified · 2026-10-02T18:26:58.075Z.
Link to this claimRevision history
- — First publication after primary-source research and independent automated verification.
- — Expanded explanation: Compare the peg, traded price and exit proceeds. Worked examples are illustrative; source checks and independent verification are recorded separately.
On the Inspect a stablecoin path · Learn next: Cash-backed stablecoins: what sits behind the token?
Source register
Sources and references
Retrieval dates and locators are recorded individually.- SEC Division of Corporation Finance: Statement on StablecoinsU.S. Securities and Exchange Commission
Definition and intended reference asset; statement has explicitly limited scope, not a general legal classification.
Locator: Introduction and Description of Covered Stablecoins · Retrieved: 2026-10-02T14:41:32.877120+00:00Open source - USDC TermsCircle
USDC backing, conditional redemption, price fluctuations, no intrinsic interest, freezes, fees and eligibility.
Locator: Sections 1–4 and 13–16 · Version / scope: Response SHA-256 23312ae7a14fc5e876bce04cbc739e473da466c4a2ae2a35531ffc4cda972ca8 · Retrieved: 2026-10-02T14:38:29.678281+00:00Open source - Tether fee scheduleTether
Issuer service fees and minimums, distinct from exchange and network fees.
Locator: Direct acquisition and redemption · Version / scope: Response SHA-256 6e032c6a54088fea9f166296137237ab04cf589fc35b921e42df3ca6d922456c · Retrieved: 2026-10-02T14:38:29.678719+00:00Open source - EURC TermsCircle
Euro reference, reserve denomination and issuer/redemption scope; not a USD peg.
Locator: Sections 1–2 and 13 · Version / scope: Response SHA-256 4001e52b92c2e8a39d906c99e579bba86e0ef4c6c7540f32926f314b314fed54 · Retrieved: 2026-10-02T14:38:53.343445+00:00Open source - USDC Risk FactorsCircle
Operational, banking and transfer restrictions.
Locator: Blocked Addresses; Software protocols; Claim on funds · Version / scope: Response SHA-256 0b2c30c7cbbb8058626ad7023b2c5282cb99b5bf95216d97010979846ce0e073 · Retrieved: 2026-10-02T14:38:29.678429+00:00Open source
Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.
Editorial method and correctionsDegrees of Satoshi editorial project. “A stablecoin peg is a target; its market price is a trade.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/stablecoin-peg-vs-market-price/