Glossary

Attestation

An accountant's report on specific claims, such as an issuer's reserve balance on stated dates. Narrower than a full financial-statement audit.

Blockchain

A shared, append-only digital ledger maintained by a network of computers. Stablecoins are recorded on public blockchains such as Ethereum and Solana.

Burn

To destroy tokens, typically when they are redeemed for dollars.

CBDC (central bank digital currency)

Digital money issued directly by a central bank. US federal agencies are barred from establishing, issuing or promoting one under Executive Order 14178.

CUSO

Credit union service organization. Under the GENIUS Act, a CUSO owned by or borrowing from an insured credit union counts as a "subsidiary of an insured credit union".

Depeg

When a stablecoin's market price moves materially away from its target, such as $1.

Finality

The point at which a payment cannot be reversed by the system that settled it.

GENIUS Act

The federal law (Public Law 119-27, July 18, 2025) that regulates payment stablecoins and their issuers in the United States.

Mint

To create new tokens, typically when an eligible customer delivers dollars to the issuer.

Off-ramp / on-ramp

A service that converts tokens into bank dollars (off-ramp) or bank dollars into tokens (on-ramp).

Pass-through insurance

FDIC coverage that can extend to the underlying owners of funds a company places in a bank on their behalf, if record-keeping and other conditions are met. It never covers the failure of the nonbank company itself.

Payment stablecoin

The GENIUS Act's term for a digital asset used for payment or settlement that its issuer must redeem for a fixed amount of money. Only permitted issuers may issue one in the US.

PPSI (permitted payment stablecoin issuer)

An issuer allowed to issue payment stablecoins under the GENIUS Act: a licensed subsidiary of an insured depository institution or credit union, a federal qualified issuer (OCC), or a state qualified issuer.

Redemption

Returning stablecoins to the issuer in exchange for dollars.

Reserves

The assets an issuer holds to back its tokens, such as cash, deposits, short-term Treasury bills and government money market fund shares.

Smart contract

Software deployed on a blockchain that runs automatically according to its code.

Synthetic dollar

A token that targets $1 using trading positions, such as crypto collateral hedged with short futures, rather than cash reserves.

Tokenized deposit

A bank deposit or credit union share recorded on a blockchain. It remains a deposit and is excluded from the GENIUS definition of payment stablecoin.

Tokenized Treasury fund

A fund holding Treasuries or money market instruments whose shares are recorded on a blockchain. Typically a security, and it passes yield to holders.

Wallet

Software or hardware that holds the keys used to control tokens on a blockchain.

Educational material only. Not legal, investment, tax or accounting advice, and not a recommendation about any asset, issuer or vendor. Laws and agency rules are changing; check the cited primary sources and consult counsel before acting.