What is Stablecoin?

A Stablecoin is a class of cryptocurrency that attempts to offer price stability by pegging its market value to an external reference, most commonly fiat currencies like the US Dollar (USD). The most widely used stablecoins globally are Tether (USDT) and USD Coin (USDC).

Stablecoins have revolutionized merchant crypto payments by completely eliminating price volatility. Instead of accepting Bitcoin and hoping the price doesn't drop before converting it to fiat, merchants can accept or instantly settle in Stablecoins, guaranteeing that a $100 sale retains exactly $100 in purchasing power.