> For the complete documentation index, see [llms.txt](https://docs.btc1usd.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.btc1usd.com/part-1-getting-started-with-crypto/what-is-a-stablecoin.md).

# What Is a Stablecoin?

Stablecoins are digital currencies that aim to stay around **$1 USD**.\
They make crypto practical for payments, savings, and DeFi apps.\
Most stablecoins depend on **banks or U.S. Treasuries** to hold their value.

BTC1USD takes a different path — it’s **anchored to Bitcoin**, not banks.