A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging its market price to more stable assets. Unlike traditional cryptocurrencies, which are known for their high price volatility, stablecoins offer price stability by being backed by assets such as fiat currencies, precious metals (e.g., gold), or even other cryptocurrencies.

Stablecoins allow users to enjoy the benefits of blockchain-based digital currencies—such as security, privacy, low transaction fees, and transparency—while minimizing the price fluctuations commonly associated with other types of cryptocurrencies.