Stablecoin
A cryptocurrency designed to keep a steady value, usually one US dollar, backed by reserves held by the issuer.
A stablecoin is a token that aims to track the value of a currency, almost always the US dollar. The best known are Tether (USDT) and USD Coin (USDC). Issuers say each token is backed by reserves such as cash and short-term government debt.
Why it matters for casino players
Coins like Bitcoin can rise or fall several percent while you play. Depositing a stablecoin means your balance is not also a bet on the crypto market. Stablecoins also run on fast, cheap networks such as Tron and Solana.
Risks
- Issuer risk: a stablecoin is only as good as its issuer's reserves and ability to redeem.
- It tracks USD, so if you count your money in another currency, such as Canadian dollars, its value still moves with the exchange rate.
- Availability on exchanges depends on local rules. In Canada, which stablecoins trading platforms can offer has changed over time.
Worked example
You deposit 500 USDT. While you play, Bitcoin drops 5%. Your balance is unaffected by that move, though a change in the exchange rate would still change its value in your own currency.