Definition
Stablecoin
A digital token designed to hold a constant value against a reference currency, usually the US dollar.
A stablecoin is a blockchain-issued token intended to trade at parity with a reference asset, most commonly the US dollar, with the peg maintained by reserves held against the tokens in issue. For SPV funding its usefulness is specific: an investor in a market with capital controls, thin dollar liquidity, or slow correspondent banking can hold and transfer dollar value without waiting on a SWIFT chain. Rocketbook accepts stablecoin deposits alongside the bank rails for that reason. The considerations are the ones that apply to any digital asset: the credibility of the issuer's reserves, the network the transfer settles on, and the fact that sending to a wrong address is generally irreversible.