# A stablecoin peg is a target; its market price is a trade 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. Evidence: [SEC Division of Corporation Finance: Statement on Stablecoins](https://www.sec.gov/newsroom/speeches-statements/statement-stablecoins-040425); [USDC Terms](https://www.circle.com/legal/usdc-terms) Canonical: https://degreesofsatoshi.com/encyclopedia/stablecoin-peg-vs-market-price/ Published: 2026-10-02 Substantively modified: 2026-10-02 Independently verified by an automated reviewer: 2026-10-02T18:26:58.075Z Data current through: 2026-10-02 AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied. ## Key facts - **Peg:** A reference target, such as one token to one dollar. ([SEC Division of Corporation Finance: Statement on Stablecoins](https://www.sec.gov/newsroom/speeches-statements/statement-stablecoins-040425)) - **Quote:** A venue-specific exchange price, not an issuer payout promise. ([USDC Terms](https://www.circle.com/legal/usdc-terms)) - **Arbitrage:** Requires an executable route and must cover its costs. ([SEC Division of Corporation Finance: Statement on Stablecoins](https://www.sec.gov/newsroom/speeches-statements/statement-stablecoins-040425); [Tether fee schedule](https://tether.to/en/fees/)) ## 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. Evidence: [USDC Terms](https://www.circle.com/legal/usdc-terms) ## 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. Evidence: [SEC Division of Corporation Finance: Statement on Stablecoins](https://www.sec.gov/newsroom/speeches-statements/statement-stablecoins-040425); [Tether fee schedule](https://tether.to/en/fees/) ## 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](/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. Evidence: [USDC Terms](https://www.circle.com/legal/usdc-terms); [EURC Terms](https://www.circle.com/legal/eurc-terms) ## Questions ### 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. Evidence: [USDC Terms](https://www.circle.com/legal/usdc-terms) ### 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. Evidence: [SEC Division of Corporation Finance: Statement on Stablecoins](https://www.sec.gov/newsroom/speeches-statements/statement-stablecoins-040425); [USDC Risk Factors](https://www.circle.com/legal/usdc-risk-factors) ## Claims and scope ### stablecoin-peg-vs-market-price-quick-answer 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: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### stablecoin-peg-vs-market-price-fact-peg Peg: A reference target, such as one token to one dollar. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### stablecoin-peg-vs-market-price-fact-quote Quote: A venue-specific exchange price, not an issuer payout promise. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### stablecoin-peg-vs-market-price-fact-arbitrage Arbitrage: Requires an executable route and must cover its costs. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ## Sources - [SEC Division of Corporation Finance: Statement on Stablecoins](https://www.sec.gov/newsroom/speeches-statements/statement-stablecoins-040425) — U.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+00:00. - [USDC Terms](https://www.circle.com/legal/usdc-terms) — Circle. USDC backing, conditional redemption, price fluctuations, no intrinsic interest, freezes, fees and eligibility. Locator: Sections 1–4 and 13–16. Retrieved: 2026-10-02T14:38:29.678281+00:00. - [Tether fee schedule](https://tether.to/en/fees/) — Tether. Issuer service fees and minimums, distinct from exchange and network fees. Locator: Direct acquisition and redemption. Retrieved: 2026-10-02T14:38:29.678719+00:00. - [EURC Terms](https://www.circle.com/legal/eurc-terms) — Circle. Euro reference, reserve denomination and issuer/redemption scope; not a USD peg. Locator: Sections 1–2 and 13. Retrieved: 2026-10-02T14:38:53.343445+00:00. - [USDC Risk Factors](https://www.circle.com/legal/usdc-risk-factors) — Circle. Operational, banking and transfer restrictions. Locator: Blocked Addresses; Software protocols; Claim on funds. Retrieved: 2026-10-02T14:38:29.678429+00:00. ## Revision history - 2026-10-02: First publication after primary-source research and independent automated verification. - 2026-10-02: Expanded explanation: Compare the peg, traded price and exit proceeds. Worked examples are illustrative; source checks and independent verification are recorded separately. ## Cite this entry 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/