stablecoin
3 synonyms and 1 antonym for stablecoin, grouped by meaning and by how common each one is.
Noun — A cryptocurrency designed to stay at a fixed value, usually one unit to one US dollar, rather than rising and falling like other coins. The peg is maintained by holding reserves of money or other assets, or by rules written into software.
Synonyms
Rare, literary or technical
Precise, but they will stand out — check the sense before using one.
pegged coin
pegged token
dollar-pegged token
Antonyms
volatile cryptocurrency
How to use stablecoin
The word patterns that sound natural to a native speaker.
dollar-pegged stablecoin
stablecoin reserves
fiat-backed stablecoin
algorithmic stablecoin
break the peg
Neutral technical term, now common in financial reporting and in regulation.
Etymology
A compound of stable and coin, so called because it is designed to hold a steady value.
Full origin of stablecoin →Frequently asked questions
What is the difference between a stablecoin and normal money?
A stablecoin aims to track a normal currency but is issued by a private company or a piece of software and moves on a blockchain. Ordinary bank deposits are claims on a regulated bank, often covered by a deposit protection scheme; stablecoin holders' rights depend on the issuer's terms and the law where it operates.
What is the difference between a fiat-backed and an algorithmic stablecoin?
A fiat-backed stablecoin is meant to be covered by reserves of cash and similar assets held by the issuer. An algorithmic one tries to hold its price through rules in software that expand or shrink supply, without full reserves behind it. Several algorithmic designs have lost their peg.
What does it mean when a stablecoin depegs?
Depegging means the coin trades away from the value it is supposed to track, for example at 95 cents instead of a dollar. It usually happens when holders doubt the reserves or the mechanism and try to sell or redeem at once.
