This chapter explores the world of stablecoins, crypto assets pegged to a benchmark. The explosive growth of stablecoins in recent years is explained by the fact that they try to remedy a major drawback of cryptocurrencies, the instability of their price. The standard adopted for the peg is usually the US dollar: One stablecoin should always be equal to one dollar. Most stablecoins are “collateralized” by a portfolio of assets supposed to match the total value of the stablecoins issued against them. Others are “algorithmic”; the peg is obtained through a trading rule governed by an algorithm. One risk of collateralized stablecoins is that the collateral sits in an inherent uncomfortable trade-off: To yield attractive returns, the collateral pool has to sacrifice part of its liquidity, but this puts the stability of the stablecoin’s balance sheet at risk. The same conundrum characterizes another important asset class, money market funds. For the reason just explained, money market funds experienced severe liquidity problems during the financial crisis. On the other side, algorithmic stablecoins, having no collateral, have no intrinsic value, which explains why they were subject to spectacular failures. The chapter concludes with some indications on the regulation of stablecoins and on the possible use of them in facilitating the flow of workers’ remittances.