#AbuDhabiStablecoin A stablecoin is a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the US dollar, a commodity like gold, or a basket of assets. Unlike volatile cryptocurrencies such as Bitcoin, stablecoins aim to minimize price fluctuations, making them suitable for transactions, savings, and decentralized finance (DeFi) applications. They achieve stability through mechanisms like collateralization (backing with reserves) or algorithmic adjustments. Popular examples include Tether (USDT), USD Coin (USDC), and Dai. Stablecoins offer the benefits of blockchain technology—speed, transparency, and security—while providing a reliable store of value and medium of exchange.