Stablecoin
A cryptocurrency designed to hold a steady value.
Stablecoins aim to track a stable asset, usually the US dollar, to make crypto payments and trading less volatile.
A stablecoin is a cryptocurrency built to hold a steady value, almost always pegged one-to-one to the US dollar. It gives traders a way to sit in dollars on a blockchain, move between crypto assets, and settle trades without cashing out to a bank. The biggest are Tether (USDT) and USD Coin (USDC).
The peg is only as good as what backs it. The most trusted stablecoins hold reserves of cash and short-term Treasuries roughly equal to the coins in circulation, so each one can be redeemed for a dollar. Others have tried to hold the peg with algorithms and collateral in other crypto, and some of those have failed spectacularly, breaking the peg and wiping out holders. Where the reserves are and who audits them is the question that matters.