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Stablecoin

Assets

In short A token pegged to a stable asset, usually the US dollar (USDT, USDC). The cash leg of crypto trading and an increasingly important payment rail.

The peg holds because the issuer promises to redeem one token for one dollar and keeps reserves to back it — so the real question is never the price on the screen but who the issuer is, what the reserves are, and which regulator can reach them. Issuers can freeze addresses, which is exactly what makes them acceptable to banks and exactly what makes them not censorship-resistant. Algorithmic designs that tried to hold a peg without reserves have failed repeatedly.

Learn this properly The Beginner’s Guide covers this in context
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