Definition of Stablecoins

Financial Terms Beginning with S

What are Stablecoins

Stablecoins are a form of digital currency, issued by a company, that is backed by a reserve asset. The asset is pegged or linked to a stable external reference, such as US Treasury instruments or gold. A stablecoin is designed to reduce the volatility relative to other cryptocurrencies that are unpegged.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Bitcoin

Cryptocurrency

Fiat Currency

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