A stablecoin is a digital asset designed to maintain a stable value relative to a reference asset, commonly a fiat currency such as the U.S. dollar. Designs vary: some are backed by reserves, some use crypto collateral, and some use algorithmic mechanisms, so risk analysis depends on structure and issuer controls.
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Glossary term
What is Stablecoin?
A stablecoin is a digital asset designed to maintain a stable value relative to a reference asset, commonly a fiat currency such as the U.S. dollar. Designs vary: some are backed by reserves, some use crypto collateral, and some use algorithmic mechanisms, so risk analysis depends on structure and issuer controls.