A stablecoin is a cryptoasset engineered to maintain a steady value, most commonly pegged to the US dollar. They're widely used within crypto markets as a way to hold value or move funds without constantly converting back to traditional currency.
Not all stablecoins maintain their peg the same way — some are backed by cash and cash-equivalent reserves, others by other cryptoassets, and others by algorithmic mechanisms. "Stable" describes the design goal, not a guarantee; several stablecoins have lost their peg in the past, so understanding how a specific one is backed matters.