Glossary term
Stablecoin
A cryptocurrency pegged to a fiat currency, usually the US dollar; macro-relevant for dollar demand and crypto liquidity flows.
A Stablecoin is a cryptocurrency designed to hold a stable value by pegging to a fiat currency, most commonly the U.S. dollar, and backing the peg with reserves. The largest stablecoins hold tens of billions in Treasuries and cash equivalents, making them a meaningful and growing source of dollar and short-term debt demand. They are macro-relevant both as crypto-market plumbing and as a new channel for dollar liquidity. See Money Temperature 101.