Stablecoin

A stablecoin is a digital currency created to maintain a stable value. Most stablecoins are directly pegged to a predetermined fiat currency or tangible commodity, such as the Gemini Dollar (GUSD), which is pegged 1:1 to the U.S. dollar. Some stablecoins achieve price stability through collateralization against other cryptocurrencies or algorithmic supply management. Due to their stable value, stablecoins are primarily intended for use in transactions rather than as investment assets.