stablecoin meaning: definition, etymology and quotations

stablecoin

noun

Etymology From stable + coin, from being backed by “stable” real-world assets.

A cryptocurrency with price stability by design, often pegged to a stable asset such as the US dollar.

Several other companies have recently introduced so-called stablecoins, linked to the value of the dollar. JPMorgan Chase even said it was experimenting with the concept last month.2019 February 28, Nathaniel Popper, Mike Isaac, “Facebook and Telegram Are Hoping to Succeed Where Bitcoin Failed”, in The New York Times, →ISSN, archived from the original on 01 Mar 2019:
The first attempt to scale a stablecoin came from Maker. At the time of writing, there are about half a billion dollars worth of cryptocurrency tied up as collateral for this stablecoin—the Dai—whose value is pegged to the US dollar.2020, David Birch, The Currency Cold War, London Publishing Partnership, →ISBN, page 98:

3 more examples

So investors buy stablecoins not to make a profit but instead as a place to store money within the cryptocurrency infrastructure and to use when buying and selling other crypto assets. […] The first stablecoin was created in 2014 to help facilitate transactions in the crypto system because at the time, banks were reluctant to give accounts to crypto companies, McKeon said.2021 October 27, Jeanne Sahadi, “How stablecoin is different than other cryptocurrencies … and how it’s not”, in CNN Business:
But the meltdown gathered momentum this week when TerraUSD, a stablecoin, imploded. Stablecoins, which are meant to be a more reliable means of exchange, are typically pegged to a stable asset such as the U.S. dollar and are intended not to fluctuate in value.2022 May 12, David Yaffe-Bellany, Erin Griffith, Ephrat Livni, “Cryptocurrencies Melt Down in a ‘Perfect Storm’ of Fear and Panic”, in The New York Times, →ISSN, archived from the original on 13 May 2022:
Until six months ago, stablecoins were a niche pursuit, used mostly in crypto trading and criminal activity.2025 July 5, Philip Stafford, Akila Quinio, “Stablecoins begin to enter the mainstream with backing from Trump administration”, in FT Weekend, London: The Financial Times Ltd., →ISSN, →OCLC, page 11: