Stablecoin
A crypto ("cryptomonnaie stable") built to hold a steady price, almost always pegged to one US dollar, with the issuer holding reserves behind it.
A stablecoin is a token pegged to a regular currency, and that's the US dollar pretty much every time. The two you'll see everywhere are Tether (USDT) and USD Coin (USDC). Their issuers claim each coin is covered by reserves like cash and short-dated government bonds.
Why gamblers like them
Bitcoin can move several percent up or down during one session. Play with a stablecoin and you're not accidentally betting on crypto prices at the same time. They also move on quick, low-fee networks such as Tron and Solana.
The catch
- Issuer risk: the coin is only worth what the company's reserves and its ability to redeem can back up.
- It's USD, not CAD. Your 500 USDT is still worth more or fewer Canadian dollars as the exchange rate moves.
- Where you can buy them depends on the rules. Here in Canada, the list of stablecoins trading platforms may offer hasn't stayed the same over the years.
Real-life example
You put 500 USDT on a casino. Mid-session, BTC falls 5%. Your balance doesn't care. But if the loonie moves against the US dollar, what that balance is worth in CAD still changes.