Stable Coins

Stablecoins

Stablecoins are cryptocurrencies designed to maintain a stable value—most commonly pegged to a fiat currency like the US dollar.​
They’re widely used for payments, trading, moving funds across exchanges, and as “cash-like” collateral in DeFi—because they reduce volatility compared to assets like BTC or ETH.​

Main categories (high level):

• Fiat-backed: Backed by reserves (cash, T-bills, etc.) held by an issuer.

• Crypto-backed: Backed by other crypto assets, typically overcollateralized.

• Algorithmic: Use mechanisms to target a peg; these can carry additional risk.