Reading Time: < 1 minute

Stablecoin is a type of digital asset that is designed to maintain a stable value, can be pegged to cryptocurrency or fiat money. On many popular stablecoins, the price is stable because its issuers guarantee users can convert it to its native currency or assets with the same value.

Popular stablecoins include Tether (USDT) and USD Coin (USDC), which are backed 1:1 by actual US dollars. This means one USDC or USDT equals one US dollar. Stablecoin that is backed by rupiah is also available in the market, namely the Rupiah Token (IDRT), which was the first crypto asset designed to have the same value as the Indonesian Rupiah.

Not just limited to fiat money or commodities like gold, some stablecoins are backed by other crypto assets to keep their price stable. One example is Dai, which is programmed to have the same value as the US dollar, but using other crypto-assets for its collaterals such as ETH, USDC, Paxos, Yearn, and many more.

Explore Other Vocabulary ‚Üí