Stablecoin
Stablecoins let you hold dollar-denominated value on-chain.
Prediction Markets 101 editorial team Updated April 16, 2026 1 min read
Definition
A stablecoin is a cryptocurrency designed to maintain a stable price against a reference asset (usually the US dollar). USDC is a stablecoin.
Plain-English explanation
Types of stablecoins: fiat-backed (USDC, USDT — hold cash reserves), crypto-collateralized (DAI — backed by over-collateralized crypto), algorithmic (various failed designs). USDC is the cleanest regulated fiat-backed stablecoin.