A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a reserve of assets, such as U.S. dollars or gold. This stability makes stablecoins less volatile than traditional cryptocurrencies like Bitcoin or Ethereum, which can experience significant price fluctuations. Stablecoins are often used for transactions, trading, and as a store of value in the digital economy. They can facilitate faster and cheaper cross-border payments compared to traditional banking systems. Popular examples of stablecoins include Tether (USDT) and USD Coin (USDC).