The name implies that any crypto or digital asset that has a steady value in comparison to a conventional money asset is known as stablecoin. The value of Stablecoin is secured by risk-free assets like gold or fiat currencies which reduces the volatility of prices. One fiat currency, an entire group of currencies or any other assets of value could be the asset that serves as the backer.

Stablecoins aim to mitigate the fluctuation of digital assets by creating an more stable and reliable environment that encourages the use of digital currency. They blend the security of cash currencies and the security and decentralization that comes with cryptocurrency to give you the perfect combination.