Stablecoin

A stablecoin is a cryptocurrency designed to hold a steady value, usually pegged one-to-one to a fiat currency like the US dollar. Leading examples include USDT and USDC. Stablecoins act as the “cash” of crypto: traders use them to move in and out of positions without leaving the market, and they underpin most DeFi activity. Their reliability depends entirely on the quality of their reserves.