#BigTechStablecoin Stablecoins are a type of cryptocurrency designed to minimize price volatility, contrasting sharply with the wild swings of Bitcoin or Ethereum. They achieve this stability by pegging their value to more stable assets, most commonly fiat currencies like the US dollar, but also commodities such as gold, or even other cryptocurrencies.

This pegging mechanism varies: some stablecoins are backed by actual reserves held in traditional financial institutions (fiat-collateralized), while others rely on crypto collateral or complex algorithms to maintain their value. Their primary purpose is to offer a bridge between the volatile crypto market and traditional finance, facilitating payments, cross-border transactions, and providing a stable store of value within the decentralized finance (DeFi) ecosystem.