> ## Documentation Index
> Fetch the complete documentation index at: https://docs.onconsul.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Stablecoin Basics

> The basics of stablecoin payouts in 5 minutes

Stablecoins (e.g. USDC, USDT) are cryptocurrencies pegged to a fiat currency, typically the US dollar
but sometimes other currencies (e.g. EURC is pegged to the Euro). They maintain this peg by holding
a reserve of that fiat currency. By combining the stability of fiat with the speed and programmability
of crypto, stablecoins have become an important tool in global payments.

#### USDC

USDC is a stablecoin pegged to the US dollar. [Circle](https://circle.com/) is the issuer and maintains
a reserve surplus of all USDC in circulation. These reserves are held by BlackRock and
[independently audited by Deloitte](https://www.circle.com/transparency).

#### USDT

USDT is the most widely used stablecoin by transaction volume. [Tether](https://tether.to/) is the
issuer. USDT volume is primarily on Tron, a separate L1 blockchain from Ethereum.

### Why Stablecoins for Payouts

Traditional cross-border payments route through multiple correspondent banks, take 2-5 business days,
and charge fees at each hop. Stablecoin transfers settle in seconds, cost fractions of a cent, and
work 24/7 - including weekends and holidays.

USDC and USDT also have deep liquidity across global currency pairs, making conversion to
local currency straightforward (see [Off-Ramping](#off-ramping)).

### L1s and L2s

Ethereum is the original layer-1 (L1) blockchain that USDC launched on. Over time, high gas fees and
congestion led to layer-2 (L2) networks - blockchains built on top of Ethereum that batch transactions
for lower cost. The primary L2 that Consul uses is **Base, Coinbase's L2**. All USDC funds on Consul
are held on Base.

<Info>
  A stablecoin can exist on multiple chains. USDC exists on both Ethereum and Base.
  USDT volume is primarily on Tron.
</Info>

### Gas Fees

Every blockchain transaction requires a small fee called **gas**, paid to the network to process the
transaction. On Ethereum L1, gas can cost several dollars per transfer during peak congestion. On Base,
gas fees are typically fractions of a cent - making it practical for high-volume payouts.
**Consul abstracts away gas fees for you, so you don't need to worry about them.**

### On-Ramping

On-ramping is the process of converting fiat currency into stablecoins. When you deposit USD or
another fiat currency into your Consul balance, Consul converts those funds into USDC on Base.
This happens automatically - you send fiat and your payout balance is credited in USDC. See
[Flow of Funds](/guides/flow-of-funds) for deposit methods and timing.

### Off-Ramping

Once a recipient receives USDC, they can hold it, send it to others, or convert it to local currency.
Conversion to fiat - called **off-ramping** - is available through exchanges, local payment providers,
or directly through Consul. Recipients in any supported country can turn stablecoin payouts into
spendable local currency.

## Next Steps

<CardGroup cols={3}>
  <Card title="Quickstart" icon="truck-fast" href="/guides/quickstart">
    Send your first payout in minutes
  </Card>

  <Card title="API Reference" icon="code" href="/api-reference/overview">
    Jump into the V1 API
  </Card>

  <Card title="Flow of Funds" icon="arrow-right" href="/guides/flow-of-funds">
    Understand how money moves through Consul
  </Card>
</CardGroup>