Collateralization Definition
Collateralization is the financial process of securing a stablecoin or loan with an underlying asset of value to guarantee its stability and redemption. This me
Collateralization is the financial process of securing a stablecoin or loan with an underlying asset of value to guarantee its stability and redemption. This mechanism is fundamental to maintaining the peg of asset-backed stablecoins and mitigating counterparty risk in decentralized finance.