# Stablecoins Stablecoins are the most successful product to emerge after decentralized exchanges. At $250B+ in market cap, they’ve grown fast but are still early, 99% remain fiat-backed & centralized.
I was in San Francisco speaking with a billionaire investor [Nikhil Kamat](https://x.com/nikhilkamathcio) who co-founded investing app Zerodha and our conversation made me realize how much stablecoins still live in the echo chamber of crypto Twitter. > Nikhil: “I keep hearing about stablecoins like USDC and USDT. As an investor, how do I actually use them? What makes them special?” > > Me: “You can trade with them, earn APY.” > > Nikhil: “But I can do that with a bank and get FDIC insurance. And if I want to hold currency, why stick to USD that has debt risks? Why not AED in Dubai?” > > Me: “True. But with stablecoins, you can self-custody and move them anywhere instantly.” > > Nikhil: “So I get full custody, no freezing, no risk of seizure. Sure, That has some value” > > Me: “Not exactly. USDC and USDT can be frozen anytime, they comply with US regulations.” > > Nikhil: “Then what’s the point?” > > Me: “Decentralized versions will come hopefully” USDC and USDT are systemic risks. They can be weaponized by the governments. [Operations choke point](https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=409457) already proved regulators don’t always play fair. In many ways, these are invisible CBDCs. The future of stablecoins must be: * Credibly neutral, not tied to one nation’s debt. * Censorship-resistant, with no freeze switches while still keeping bad actors away. * Low volatility * Should adjust to real time metrics from internet capital markets All of these are critical when global trade worth trillions of dollars is at stake. > Sources > > * [Operation choke point](https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=409457) > * [US $37T debt reset using stablecoins](https://www.youtube.com/watch?v=enUgDZ4ULCc\&t=470s) > * [Nikhil Kamat](https://x.com/nikhilkamathcio)