In the exploding realm of cryptocurrencies, a new line of financial products has emerged that has caught the attention of both investors and regulators — so-called “stablecoins,” which are backed by cash or another reserve asset.

Stablecoins seek to provide the best of both worlds: the stability of a traditional government-backed currency as well as the privacy and convenience offered by crypto transactions. They are often marketed towards investors who may not have the stomach for the volatility associated with Bitcoin, Ethereum and other popular cryptos — which have been known to see-saw widely in value on a day-to-day basis.

The existing stablecoins market is worth some $113 billion, U.S. Securities and Exchange Commission Chair Gary Gensler said earlier this month during a speech at the Aspen Security Forum. He added that in July, nearly three-quarters of trading on all crypto trading platforms occurred between a stablecoin and some other token.

Even social media behemoth Facebook is trying to get in on the