The biggest concern around crypto is the absence of an underlying asset to gauge the price of the financial instrument. Stablecoins, however, help overcome that drawback. It is a type of crypto that is pegged against a fiat currency or gold reserves, to stabilise its prices. That said, stablecoins have weaknesses too. For example, it is possible that the reserves backing a stablecoin could turn out to be insufficient. It is also possible that the digital-trading platforms, which drive transactions in stablecoins, could become defunct and this could cut off the investor from his/her stablecoin holding. Stablecoins, which can be used for illegal activities, also face higher regulatory risk.