Back to glossary
Stablecoin
A stablecoin is a type of cryptocurrency that is pegged to the value of a stable asset, such as the US dollar. The goal of a stablecoin is to provide a digital currency that is less volatile than traditional cryptos, such as Bitcoin or Ethereum. This can make stablecoins more suitable for transactions and useful as a store of value.
There are different types of stablecoins, including those that are backed by assets such as gold or other cryptocurrencies, or those that are algorithmically managed to maintain a stable value.
Some examples of stablecoins include Tether (USDT), which is pegged to the US dollar, and DAI, which is pegged to the value of the Ethereum token (ETH).