What Is a Stablecoin? Definition, Types and Uses (2026)

A stablecoin is a cryptocurrency whose value is pegged to a reference asset, most often a currency such as the euro or the dollar. One euro in stablecoin is worth about one euro, while the price of bitcoin can swing sharply in a single day. That stability makes it usable as an everyday payment method, including at merchants. In Europe, stablecoins are governed by the MiCA regulation.

Updated on 1 November 2026.

How does a stablecoin keep its value?

For every token in circulation, the issuer holds an equivalent reserve in bank deposits or short-term debt, and commits to redeem the token at its reference value. That promise of redemption anchors the price.

A stablecoin is therefore only as good as its issuer: transparency on reserves, regulatory framework, ability to redeem. Lyzi works close to issuers, including Circle and Société Générale, and only accepts stablecoins from identified issuers.

Technically, a stablecoin runs on a blockchain, such as Ethereum, and smart contracts automate its transfers.

The three types of stablecoins

• Currency-backed: each token is covered by reserves in official currency or highly liquid assets. This is the case for USDC, EURC, EURCV and EURE.
• Crypto-backed: the token is secured by other crypto-assets deposited in excess, to absorb their volatility.
• Algorithmic: stability relies on a supply-and-demand mechanism, without full reserves. This model showed its limits with the collapse of TerraUSD in 2022.

Stablecoins and MiCA: what changes in Europe

The European MiCA regulation has governed stablecoins since 30 June 2024. It distinguishes e-money tokens, pegged to a single official currency and issued by a credit or e-money institution, from asset-referenced tokens. Regulated platforms in Europe only offer compliant stablecoins.

USDT is not MiCA compliant, so Lyzi does not accept it directly. You can swap your USDT for USDC before paying.

Which stablecoins can you pay with?

• USDC (Circle), the most widely used digital dollar: see what is USDC and the guide to paying with USDC.
• EURC (Circle), the digital euro: EURC explained.
• EURCV (Société Générale-FORGE): a French banking stablecoin.
• EURE (Monerium), a digital euro issued by an e-money institution.

What is a stablecoin used for?

• Paying: the customer pays in stablecoin, the merchant is settled with no volatility exposure.
• Transferring: value crosses borders in minutes, at any hour.
• Managing treasury: companies keep part of their funds in stable digital money.

These uses are detailed in the Association du Paiement Stablecoins Reference Guide, published in October 2026 and co-written by Damien Patureaux, CEO of Lyzi.

What a stablecoin changes for a merchant

Accepting a stablecoin does not mean rebuilding your payment stack. Merchants sell online and in store: with Lyzi, a single integration covers both.

• In store: on existing payment terminals, among more than one million compatible terminals.
• Online: WooCommerce and PrestaShop plugins, payment button, payment link or API.
• Single connector: the customer pays from the wallet or exchange account that holds their crypto, among more than 500 wallets and integrated exchanges.
• Settlement: in euros or stablecoins.

For settlement details, read our article on stablecoin payments for merchants and the complete guide to crypto payments. Running a shop: see the solution for local merchants. PSP or bank: the PSP and banks solution.

What to watch out for

A stablecoin is still a digital asset. Its price is stable, not fixed: it can briefly drift from its reference during market stress. The choice of issuer, the quality of reserves and wallet security all matter. For a merchant, the simplest path is to accept MiCA-compliant stablecoins and rely on infrastructure already in production.

Frequently asked questions

What is the difference between a stablecoin and a regular cryptocurrency?

A stablecoin is pegged to a reference currency and keeps a stable value; a cryptocurrency like bitcoin has a freely moving price.

Are stablecoins legal in Europe?

Yes. They are governed by the European MiCA regulation, which sets rules for issuers and platforms.

Which euro stablecoin should I use?

EURC, EURCV and EURE are euro stablecoins, all accepted by Lyzi.

Can I pay in store with a stablecoin?

Yes, at merchants equipped with Lyzi: the customer scans a QR code and pays from their wallet or exchange.

→ Contact the Lyzi team to accept stablecoins in store and online.