A stablecoin is a cryptocurrency that is linked to a “stable” reserve asset such as the U.S. dollar and is designed to provide stability unlike other cryptocurrencies. For example, a dollar-pegged stablecoin is redeemable 1:1 for the U.S. dollar.
Stablecoins are primarily used as a means of payment or to facilitate trade. Stablecoins offer the same benefits of any cryptocurrency – instant processing & 24/7 x 365 accessibility – but also offer peace of mind due to their lack of volatility. They currently serve as the bridge that connects the traditional financial system to crypto.