Stablecoin

Token designed to track a fiat currency, usually the US dollar.

Stablecoins come in three flavors: fiat-backed (USDT, USDC — reserves held in T-bills and cash), crypto-backed (DAI — over-collateralized with crypto), and algorithmic (now mostly defunct after UST's 2022 collapse). Stablecoins are the dominant settlement asset on every major exchange and the entry point for most non-USD users.