Key takeaways
- USDT is designed to stay close to one US dollar, so the amount you deposit is roughly the amount you can spend.
- Your SCHWARZMAN card settles in USD, which makes a USD stablecoin a natural fit.
- Stablecoins carry their own risks — issuer and market — and are not bank deposits.
What a stablecoin is
A stablecoin is a digital asset designed to track the value of a fiat currency. USDT tracks the US dollar: one USDT is designed to be worth roughly one US dollar, although the market price can deviate.
Why it suits card spending
- Predictable budget: $500 deposited is roughly $500 to spend, regardless of market moves.
- Simple conversion: your card settles in USD, so a USD stablecoin needs only a minimal step.
- Simpler records: gains or losses per payment are usually tiny.
Risks to keep in mind
- Stablecoins depend on their issuer and reserves; they are not bank deposits and not covered by a deposit guarantee scheme.
- The market price can temporarily deviate from one US dollar.
- Network fees and transfer errors apply as with any digital asset.