All termsStablecoins and Tokenized MoneyStart here
Stablecoin
A stablecoin is a digital token designed to maintain a relatively stable value, usually by referencing another asset such as a national currency. Many widely used stablecoins aim to maintain a value of approximately one U.S. dollar per token, although the mechanism used to achieve that stability varies between products.
Why it matters to you
Stablecoins provide a bridge between traditional money and blockchain based markets. They are widely used for payments, trading, settlement and moving value between digital financial applications. But the word stablecoin does not mean risk free. Investors should understand what supports the token's value, who issues it and how redemption works.
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