# stablecoin

/ˈsteɪbəlˌkɔɪn/ (US) · CEFR C1 · Noun

Source: https://englishreference.com/word/stablecoin
Updated: 2026-07-19

## Definition

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.

For teachers: a cryptocurrency whose market value is pegged to an external reference, such as a fiat currency or a commodity, to minimise price volatility.

## Examples

- 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.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.