What Are Stablecoins?

Published: May 20, 2025   |   Last Updated: May 20, 2025

What are stablecoins?

Stablecoins are cryptocurrencies whose values are tied (or ‘pegged’) to those of real-world assets, like the U.S. dollar.

They were created as a response to the price volatility experienced by traditional cryptocurrencies, like Bitcoin. E.g., Tether’s USDT coin should always equal USD 1 in value.

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