Samuel, Ashwanth, et al. "1:1 Redemptions for Some, Not All." July 2025, https://www.dci.mit.edu/posts/stablecoin-redemptions-for-some-not-all
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Publication
1:1 Redemptions for Some, Not All
Abstract
The Crucial Promise
Stablecoin issuers offer a simple proposition: send one dollar to the stablecoin issuer in exchange for a digital token that represents that dollar on a blockchain. That stablecoin, for example, can be used as a payment tool or a store of value, and the issuer promises to redeem it for a dollar later. This simple promise of 1:1 redemption, known as par-value exchange, is more complicated than many realize and depends on a series of assumptions.