Stablecoin
A token designed to hold a steady value against a reference, usually the US dollar. Most are backed by reserves of cash and short-term government debt; some instead rely on algorithms or crypto collateral.
Also called stablecoins · USDT · USDC
A token designed to hold a steady value against a reference, usually the US dollar. Most are backed by reserves of cash and short-term government debt; some instead rely on algorithms or crypto collateral.
Why it matters
Stability depends entirely on the backing and the issuer's ability to honour redemptions. Algorithmic designs have failed outright.
Related terms
- Peg
- Depeg
- Collateral
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