Fiat vs. gold: assessing the resilience of stablecoins in a volatile crypto market
Abstract
This study examines the dynamic interdependence between BTC, ETH, fiat-backed, and gold-backed stablecoins using a TVP-VAR connectedness framework and a BEKK-GARCH model. We find that gold-backed stablecoins are more resilient and less connected than fiat-backed stablecoins. Moreover, we also uncover that XAUT is potentially the most robust safe-haven among gold-backed assets. Our sample period includes the Silicon Valley Bank (SVB) collapse. Using USDC as a major source of volatility, we find the same results.
Fields of Study & Subjects
Financial Risk and Volatility Modeling
Market Dynamics and Volatility
Blockchain Technology Applications and Security
Publication details
- Journal / source
- Applied Economics Letters
- Pages
- 1–7
- Publication date
- 10 February 2026
- Language
- EN