What it means
The value a stablecoin is designed to hold, such as one euro for EURC.
Reserves, the right to redeem and arbitrage traders all work to keep the price at the peg.
How it works
A move away from it is called a depeg.
Related terms
| Term | What it means |
|---|---|
| Depeg | When a stablecoin's price drifts away from the currency it tracks, for example a digital dollar trading at 0.97 dollars. |
| Stablecoin | A token on a blockchain designed to keep a steady value, usually one dollar or one euro, backed by reserves. |
| Arbitrage | Buying something where it's cheaper and selling it where it's dearer, at the same moment. |
This glossary explains terms in general. It isn't investment, tax or legal advice.