The term ‘stablecoin’ describes tokens whose value - measured in a traditional fiat currency, like GBP or USD – is intended not to fluctuate substantially.
In order to achieve that, the value of stablecoins is pegged to either; fiat currencies, other commodities or assets (e.g. gold and oil), a basket of other cryptoassets (e.g. Bitcoin and Ethereum) or determined through sophisticated algorithms (also known as a “pegged token”).
Have more questions? Submit a request