# Stablecoin

A crypto asset that is pegged (see [currLency peg](currLency-peg.md)) to a real world [currency](currency.md) such as the dollar or euro. Stablecoins may be issued on multiple [blockchain](blockchain.md).

Stablecoins may be [leverage](leverage.md) against their deposits where the total value in circulation does not equal the assets held on behalf of customers. Such stablecoins are known as *unbacked stablecoins*.

Since stablecoins are outside the regulatory perimeter, these assets are often used as a place to park winnings from crypto trading to avoid taxation.

See also [DeFi](defi.md), [staking](staking.md) and [liquidity pool](liquidity-pool.md).

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