{
  "$schema": "https://degreesofsatoshi.com/encyclopedia/schemas/article-v1.json",
  "schemaVersion": "1.0.0",
  "id": "stablecoin-peg-vs-market-price",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/stablecoin-peg-vs-market-price/",
  "collection": "stablecoins",
  "title": "A stablecoin peg is a target; its market price is a trade",
  "description": "Why a one-dollar stablecoin trades above or below one dollar, how arbitrage helps and why eligibility, fees and liquidity matter.",
  "aliases": [
    "peg versus price",
    "stablecoin premium",
    "stablecoin discount"
  ],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T18:26:58.075Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "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.",
    "claimId": "stablecoin-peg-vs-market-price-quick-answer",
    "sourceIds": [
      "stablecoin-definition",
      "circle-terms"
    ]
  },
  "keyFacts": [
    {
      "label": "Peg",
      "value": "A reference target, such as one token to one dollar.",
      "sourceIds": [
        "stablecoin-definition"
      ],
      "id": "peg",
      "claimId": "stablecoin-peg-vs-market-price-fact-peg"
    },
    {
      "label": "Quote",
      "value": "A venue-specific exchange price, not an issuer payout promise.",
      "sourceIds": [
        "circle-terms"
      ],
      "id": "quote",
      "claimId": "stablecoin-peg-vs-market-price-fact-quote"
    },
    {
      "label": "Arbitrage",
      "value": "Requires an executable route and must cover its costs.",
      "sourceIds": [
        "stablecoin-definition",
        "tether-fees"
      ],
      "id": "arbitrage",
      "claimId": "stablecoin-peg-vs-market-price-fact-arbitrage"
    }
  ],
  "prerequisites": [
    "what-is-a-stablecoin"
  ],
  "sections": [
    {
      "id": "two-prices",
      "heading": "Compare the peg, traded price and exit proceeds",
      "sourceIds": [
        "circle-terms"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "arbitrage-example",
      "heading": "An illustrative arbitrage has costs and a clock",
      "sourceIds": [
        "stablecoin-definition",
        "tether-fees"
      ],
      "paragraphs": [
        "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."
      ]
    },
    {
      "id": "reading-a-quote",
      "heading": "Measure the deviation in the correct unit",
      "sourceIds": [
        "circle-terms",
        "circle-eurc"
      ],
      "paragraphs": [
        "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](/encyclopedia/stablecoin-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."
      ]
    }
  ],
  "faq": [
    {
      "question": "Can two exchanges show different stablecoin prices?",
      "answer": "Yes. Their liquidity and available transfer or redemption routes can differ, and the issuer does not set every third-party quote.",
      "sourceIds": [
        "circle-terms"
      ]
    },
    {
      "question": "Does $0.99 prove one percent of the reserve is missing?",
      "answer": "No. Market prices can reflect access costs, uncertainty and liquidity as well as beliefs about backing.",
      "sourceIds": [
        "stablecoin-definition",
        "circle-risk"
      ]
    }
  ],
  "claims": [
    {
      "id": "stablecoin-peg-vs-market-price-quick-answer",
      "articleSlug": "stablecoin-peg-vs-market-price",
      "statement": "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.",
      "sourceIds": [
        "source-3869f308765efb15",
        "source-3f274c8c1e62ebb9"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-3869f308765efb15",
          "locator": "Introduction and Description of Covered Stablecoins"
        },
        {
          "sourceId": "source-3f274c8c1e62ebb9",
          "locator": "Sections 1–4 and 13–16"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:26:58.075Z",
        "reviewer": "Codex independent automated reviewer /root/verify_bitcoin_stablecoins_100",
        "notes": [
          "Checked Circle non-EEA terms for route-specific holder/service distinctions; the arithmetic example is an illustrative secondary-market sale rather than a issuer redemption quote.",
          "Recomputed 1,000 tokens at $0.99 as $990 gross; eligibility, cost and timing prevent treating that value as interchangeable with a direct redemption route."
        ]
      }
    },
    {
      "id": "stablecoin-peg-vs-market-price-fact-peg",
      "articleSlug": "stablecoin-peg-vs-market-price",
      "statement": "Peg: A reference target, such as one token to one dollar.",
      "sourceIds": [
        "source-3869f308765efb15"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-3869f308765efb15",
          "locator": "Introduction and Description of Covered Stablecoins"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:26:58.075Z",
        "reviewer": "Codex independent automated reviewer /root/verify_bitcoin_stablecoins_100",
        "notes": [
          "Checked Circle non-EEA terms for route-specific holder/service distinctions; the arithmetic example is an illustrative secondary-market sale rather than a issuer redemption quote.",
          "Recomputed 1,000 tokens at $0.99 as $990 gross; eligibility, cost and timing prevent treating that value as interchangeable with a direct redemption route."
        ]
      }
    },
    {
      "id": "stablecoin-peg-vs-market-price-fact-quote",
      "articleSlug": "stablecoin-peg-vs-market-price",
      "statement": "Quote: A venue-specific exchange price, not an issuer payout promise.",
      "sourceIds": [
        "source-3f274c8c1e62ebb9"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-3f274c8c1e62ebb9",
          "locator": "Sections 1–4 and 13–16"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:26:58.075Z",
        "reviewer": "Codex independent automated reviewer /root/verify_bitcoin_stablecoins_100",
        "notes": [
          "Checked Circle non-EEA terms for route-specific holder/service distinctions; the arithmetic example is an illustrative secondary-market sale rather than a issuer redemption quote.",
          "Recomputed 1,000 tokens at $0.99 as $990 gross; eligibility, cost and timing prevent treating that value as interchangeable with a direct redemption route."
        ]
      }
    },
    {
      "id": "stablecoin-peg-vs-market-price-fact-arbitrage",
      "articleSlug": "stablecoin-peg-vs-market-price",
      "statement": "Arbitrage: Requires an executable route and must cover its costs.",
      "sourceIds": [
        "source-3869f308765efb15",
        "source-1f069dbb50ebe6ce"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-3869f308765efb15",
          "locator": "Introduction and Description of Covered Stablecoins"
        },
        {
          "sourceId": "source-1f069dbb50ebe6ce",
          "locator": "Direct acquisition and redemption"
        }
      ],
      "scope": {
        "collection": "stablecoins",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:26:58.075Z",
        "reviewer": "Codex independent automated reviewer /root/verify_bitcoin_stablecoins_100",
        "notes": [
          "Checked Circle non-EEA terms for route-specific holder/service distinctions; the arithmetic example is an illustrative secondary-market sale rather than a issuer redemption quote.",
          "Recomputed 1,000 tokens at $0.99 as $990 gross; eligibility, cost and timing prevent treating that value as interchangeable with a direct redemption route."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "stablecoin-definition",
      "label": "SEC Division of Corporation Finance: Statement on Stablecoins",
      "publisher": "U.S. Securities and Exchange Commission",
      "url": "https://www.sec.gov/newsroom/speeches-statements/statement-stablecoins-040425",
      "note": "Definition and intended reference asset; statement has explicitly limited scope, not a general legal classification.",
      "checkedAt": "2026-10-02T14:41:32.877120+00:00",
      "locator": "Introduction and Description of Covered Stablecoins",
      "recordId": "source-3869f308765efb15",
      "contentSha256": null,
      "version": null
    },
    {
      "id": "circle-terms",
      "label": "USDC Terms",
      "publisher": "Circle",
      "url": "https://www.circle.com/legal/usdc-terms",
      "note": "USDC backing, conditional redemption, price fluctuations, no intrinsic interest, freezes, fees and eligibility.",
      "checkedAt": "2026-10-02T14:38:29.678281+00:00",
      "locator": "Sections 1–4 and 13–16",
      "version": "Response SHA-256 23312ae7a14fc5e876bce04cbc739e473da466c4a2ae2a35531ffc4cda972ca8",
      "recordId": "source-3f274c8c1e62ebb9",
      "contentSha256": null
    },
    {
      "id": "tether-fees",
      "label": "Tether fee schedule",
      "publisher": "Tether",
      "url": "https://tether.to/en/fees/",
      "note": "Issuer service fees and minimums, distinct from exchange and network fees.",
      "checkedAt": "2026-10-02T14:38:29.678719+00:00",
      "locator": "Direct acquisition and redemption",
      "version": "Response SHA-256 6e032c6a54088fea9f166296137237ab04cf589fc35b921e42df3ca6d922456c",
      "recordId": "source-1f069dbb50ebe6ce",
      "contentSha256": null
    },
    {
      "id": "circle-eurc",
      "label": "EURC Terms",
      "publisher": "Circle",
      "url": "https://www.circle.com/legal/eurc-terms",
      "note": "Euro reference, reserve denomination and issuer/redemption scope; not a USD peg.",
      "checkedAt": "2026-10-02T14:38:53.343445+00:00",
      "locator": "Sections 1–2 and 13",
      "version": "Response SHA-256 4001e52b92c2e8a39d906c99e579bba86e0ef4c6c7540f32926f314b314fed54",
      "recordId": "source-a09b71c06b48db6b",
      "contentSha256": null
    },
    {
      "id": "circle-risk",
      "label": "USDC Risk Factors",
      "publisher": "Circle",
      "url": "https://www.circle.com/legal/usdc-risk-factors",
      "note": "Operational, banking and transfer restrictions.",
      "checkedAt": "2026-10-02T14:38:29.678429+00:00",
      "locator": "Blocked Addresses; Software protocols; Claim on funds",
      "version": "Response SHA-256 0b2c30c7cbbb8058626ad7023b2c5282cb99b5bf95216d97010979846ce0e073",
      "recordId": "source-f0ded1628723f35a",
      "contentSha256": null
    }
  ],
  "related": {
    "articles": [
      "what-is-a-stablecoin",
      "stablecoin-depegging",
      "stablecoin-minting-redemption-eligibility"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and independent automated verification."
    },
    {
      "date": "2026-10-02",
      "kind": "substantive-edit",
      "summary": "Expanded explanation: Compare the peg, traded price and exit proceeds. Worked examples are illustrative; source checks and independent verification are recorded separately."
    }
  ],
  "citation": "Degrees 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/"
}