stablecoin
A stablecoin is a cryptocurrency designed to keep a stable value by pegging it to a fiat currency such as the US dollar or to other assets.
Unlike volatile cryptocurrencies such as bitcoin, a stablecoin is built to hold the same value as a reference asset, for example keeping one coin worth $1. The most common approach backs the coin with reserves such as cash and short-term government bonds held by the issuer; others use other cryptocurrencies as collateral or adjust supply with an algorithm.
Because stablecoins can be sent quickly on blockchains, they are used for crypto trading, cross-border transfers and online payments. Well-known examples include Tether's USDT and USDC.
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