Glossary
Stablecoin
A crypto token designed to hold a steady value, most often pegged one-to-one to the US dollar.
A stablecoin aims to stay at a fixed price, usually $1. The most common type is backed by reserves such as cash and short-term government debt held by the issuer. Others are backed by crypto collateral or try to hold the peg through algorithms.
Stablecoins are the main currency inside crypto markets. Many trading pairs are quoted against them, and many perpetual futures are settled in them. Well-known examples include USDT, issued by Tether, and USDC, issued by Circle.
The peg is a design goal, not a guarantee. A stablecoin can trade below $1 when confidence in its backing falls, an event known as a depeg.
Related terms
For education only, not financial advice. Crypto assets and stocks are volatile, and leveraged positions can lose more than the money you put in.