Glossary · Tokens & markets

Stablecoin

A token designed to hold a steady value, usually pegged to a currency like the US dollar.

A stablecoin aims to stay at a fixed value, most commonly 1 US dollar, so it can be used for payments and as a stable place to hold value on-chain.

Different stablecoins keep their peg in different ways, and no peg is guaranteed. Understanding how a given stablecoin is backed matters.

Related terms

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Educational only, not financial advice.