Stablecoin
In short
A stablecoin is a cryptocurrency designed to hold a fixed value — usually 1 US dollar. Issuers back it with reserves in dollars or treasury bills.
Stablecoins are crypto's cash: traders park profits without cashing out to fiat. The risk sits with the issuer — reserve quality and auditability are what matter.
Is a stablecoin always worth exactly one dollar?
Usually, but not guaranteed: trust crises have caused depegs — including total collapse for unbacked designs like UST in 2022.
Related terms
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