What is a stablecoin?
Crypto designed to hold a steady value, usually pegged to a currency.
Beginner 2 min readUpdated 5/27/2026
A stablecoin is a cryptocurrency designed to keep a stable value, usually pegged 1:1 to a currency like the US dollar (USDT, USDC).
People use stablecoins to:
- Hold value without the swings of Bitcoin or Ethereum
- Move money quickly between platforms
- Trade in and out of volatile coins
Stablecoins depend on the issuer holding real reserves. They're far steadier than most crypto, but no asset is completely without risk.