stablecoin
n. countablen. a type of digital currency designed to keep a steady value by being linked to a stable asset like the US dollar. It is meant to avoid the big price changes common with other cryptocurrencies.
n. a cryptocurrency whose market value is pegged to an external reference, such as a fiat currency or a commodity, to minimise price volatility.
Investors use a stablecoin to keep their money safe from market swings.
Traders often move their funds into a stablecoin during periods of high market volatility to preserve their capital.
While traditional cryptocurrencies are prone to extreme fluctuations, a stablecoin maintains its peg through either algorithmic supply adjustments or collateral reserves held in traditional financial instruments.
A blend of stable (steady in value) and coin: a coin engineered to hold a steady price by being pegged to another asset.
Etymology adapted from Wiktionary, available under CC BY-SA 4.0.
Last updated July 19, 2026