Okuzeka
Blockchain & Crypto vocabulary · Coins & Tokens

Stablecoin

Meaning in blockchain & crypto, with examples

/ˈsteɪ.bəl.kɔɪn/nounCore term

In blockchain & crypto, stablecoin means: A crypto token designed to keep a steady price, usually one US dollar, backed by cash and bonds, by other crypto or by an algorithm. It is used for payments, trading and moving money between platforms.

In Turkish: sabit coin, stabil coin, sabit değerli kripto para

How it is used

Common on exchanges, in DeFi and in regulation. People say a stablecoin is pegged to the dollar, holds its peg or loses its peg (de-pegs). Regulators look closely at the reserves that back it and how often they are checked.

Example sentences

  1. Most traders on the platform keep their balance in a dollar stablecoin between trades.

  2. The stablecoin briefly lost its peg and fell to 0.97 dollars.

Common collocations

  • dollar-pegged stablecoin
  • stablecoin issuer
  • stablecoin reserves
  • lose its peg
  • algorithmic stablecoin
  • tokenA digital asset created on top of an existing blockchain, usually by a smart contract, rather than on its own network. Tokens can stand for money, voting rights, access to a service or a unique item.
  • fiatOrdinary government-issued money such as the US dollar, the euro or the Turkish lira, as opposed to cryptocurrencies. It is not backed by gold; its value rests on trust in the state that issues it.
  • MiCAShort for Markets in Crypto-Assets, the EU regulation that sets common rules for issuing crypto assets and stablecoins and for crypto service providers, including their licensing.
  • DeFiShort for decentralized finance: financial services such as lending, borrowing and trading that run on smart contracts instead of through banks or brokers. Users keep control of their own wallets.
  • collateralAssets that a borrower locks up as security for a loan or a leveraged position. If the debt is not repaid or the collateral loses value, it can be sold to cover the loss.

More terms: Coins & Tokens

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level: