Stablecoin, explained simply

A coin meant to stay at one dollar (or another currency).

Stablecoins such as USDT and USDC aim to be worth exactly 1 US dollar. The company behind them says it holds dollars or similar assets to back every coin.

People use them to park money between trades without leaving crypto. They are not a bank account: a stablecoin can lose its link to the dollar if the backing fails.