A token tied to the value of an asset such as the U.S. dollar. A stablecoin can be collateralized with physical assets (e,g, U.S. dollar in USDC) or digital assets (e.g., DAI) or can be uncollateralized (e.g., AMPL and ESD). 

A stablecoin is a class of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset. Stablecoins have gained traction as they attempt to offer the best of both worlds—the instant processing and security or privacy of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies.