Stablecoin

A token designed to keep a stable value relative to a reference asset, usually the US dollar. Stablecoins may be backed by reserves held by an issuer (fiat-backed), over-collateralised with other crypto assets, or managed algorithmically. Fiat-backed stablecoins are issued by a central entity that typically retains the technical ability to freeze balances. Another notable example is tokenised gold and similar commodity-backed tokens that aim to track a physical reference asset rather than a fiat currency.