What Are Stablecoins? (Beyond USDT)

Stablecoins are digital currencies designed to stay close to the value of a stable asset — usually the US dollar. USDT is the best known, but there are others like USDC. Their aim is to reduce the large volatility seen in coins like Bitcoin.

Types in brief

• Fiat-backed: tied to a dollar (or equivalent) reserve, like USDT and USDC.
• Other-asset-backed or algorithmic: use different mechanisms to hold the price, and some carry higher risk.

Why people use them

To hold dollar-pegged value inside the crypto world, for fast transfers, and as an intermediate trading currency.

This is educational content, not financial advice. Crypto carries risk — verify current Saudi regulations.

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Written by the Tether.sa team