Stablecoin
a.k.a. Stable coin
A cryptocurrency designed to hold a steady value, usually one US dollar, by being backed by reserves or managed by code.
A stablecoin is crypto that tries not to move. Most aim to be worth exactly one US dollar. The biggest ones are backed by reserves of cash and short-term government debt; others use crypto collateral or algorithms to hold the peg.
They are the cash of the crypto world, used for trading, payments and DeFi. But "stable" is a promise, not a law of physics. In 2022 the algorithmic stablecoin TerraUSD lost its peg and collapsed, wiping out tens of billions of dollars. Check what actually backs a stablecoin before trusting it.
Assuming every stablecoin is as safe as cash in a bank. Some are only as good as their reserves, and some have no real reserves at all.
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