A stablecoin is a cryptocurrency designed to hold a steady value, usually pegged to a fiat currency like the US dollar.
Most stablecoins are backed by reserves of cash and short-term assets held by the issuer, so each token can be redeemed for a dollar.
USDT and USDC are the two largest dollar-backed stablecoins, widely used for trading, payments and as a safe harbor in volatile markets.
Stablecoins let people move dollar value quickly and cheaply on the blockchain, earn yield in DeFi, and settle trades without a bank.
Stablecoins depend on the issuer holding proper reserves and staying solvent, which is why transparency and regulation matter.
Stablecoins are the bridge between traditional money and the crypto world, providing stability in a volatile market.