What is Stablecoin?

Stablecoin: a crypto term, explained in plain English.

In one line

A crypto token designed to keep a steady price, usually one US dollar, by holding cash and bonds or other assets behind it.

Crypto Reviewed by Keshav Aggarwal · Updated 5 Nov 2026

In simple words

Think of a token at a fun fair. You give one dollar and get one token. Later you can swap the token back for one dollar.

A stablecoin is that token, but it lives on a blockchain and can move anywhere in minutes.

The technical side

Most large stablecoins, such as Tether’s USDT and Circle’s USDC, are fiat-backed: the issuer holds cash, Treasury bills and similar reserves and promises to redeem one token for one dollar. Others are backed by crypto held in smart contracts (DAI), and some algorithmic designs have failed badly, like TerraUSD in May 2022.

Stablecoins are used for trading, payments and moving money across borders. Track the biggest ones on our Stablecoin supply page and the latest news on NewsFeeds: Stablecoins.

Stablecoin kya hai?

Stablecoin ek crypto coin hai jiska daam hamesha lagbhag 1 dollar rehta hai, jaise USDT aur USDC. Issuer uske peeche paisa aur bonds rakhta hai.

Not investment advice. Crypto tokens can lose all their value. Read the risk disclaimer.

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