What is Stablecoin?
A token designed to keep a steady value, usually one US dollar.
Most large stablecoins, such as USDT and USDC, are backed by cash and short-term government bonds held by the issuer. Others are backed by crypto collateral or rely on algorithms.
Stablecoins are the main currency of crypto trading, and their combined value is a useful sentiment signal: money parked in stablecoins is on the sidelines. Stability depends on the issuer's reserves and redemptions, and several stablecoins have lost their peg in the past. See stablecoins explained.
