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Glossary · Crypto and payments

Stablecoin

A cryptocurrency designed to hold a steady value, usually one US dollar — USDT and USDC are the best-known examples.

By Sky Trade editorial teamUpdated

A stablecoin is a crypto token whose value is pegged to something stable, most often the US dollar. The most widely used are USDT (Tether) and USDC (Circle). Most dollar stablecoins are backed by reserves such as cash and short-term government bonds held by the issuer; others, like DAI, rely on crypto collateral and smart contracts.

The practical appeal is simple: you can move dollar value across the world in minutes over a blockchain, without the price swings of BTC or ETH. That makes stablecoins a convenient way to fund accounts on crypto-based platforms.

What stability does not mean:

  • It is not a bank deposit, and no deposit insurance stands behind it.
  • The peg can wobble; stablecoins have traded below $1 in stressful moments.
  • The token on each blockchain network is separate, so USDT on TRC-20 and USDT on ERC-20 are not interchangeable at the address level.

Sky Trade accepts USDT and USDC in 8 networks each, plus DAI and many other coins, all via NOWPayments, and keeps balances in US dollars. See how to deposit and how to buy USDT.

Example

You send 100 USDC over Base to a deposit address generated for USDC on Base. After the network confirms, about $100 is credited: Sky Trade charges no deposit fee, and the network fee is paid on your side.

Related terms

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