The credit resilience of stablecoins during financial crises is closely tied to their collateral structure. Over-collateralized stablecoins, backed by assets like fiat, gold, or cryptocurrencies, tend to maintain stability due to robust reserves cushioning market shocks. For instance, fiat-backed stablecoins like USDT rely on centralized trust and liquid reserves, while crypto-collateralized ones like DAI use decentralized mechanisms, adjusting dynamically to volatility. Under-collateralized or algorithmic stablecoins, however, often face higher risks, as their pegs depend on market confidence and complex algorithms, which can falter under stress. Historical data, such as TerraUSD’s 2022 collapse, shows weak collateral design amplifies vulnerability. Thus, a stablecoin’s ability to withstand crises hinges on the strength, transparency, and liquidity of its collateral framework.