Over the past few decades there has been a rapid evolution in cryptocurrencies. The digitization of fiat currencies took place back in the 1980s and since then many different independent currencies have been born including Bitcoin, Ethereum, and Ripple. Although Bitcoin’s “set” supply model allows a decentralized monetary manner and can be used for the transfer of money, at the same time it has given birth to extreme volatility thereby making it a medium of exchange with significant repercussions. This article covers stablecoins (cryptocurrencies meant to maintain a stable exchange rate with fiat currencies) as a response to the volatility market. Even as whitepapers and marketing do exist, lack of knowledge is still a major barrier to use crypto due to the lack of uniform language and definitions within the cryptocurrency ecosystem. This paper aims to explain the design of stablecoins by highlighting the importance of clear definitions and accurate classifications to support regulatory scrutiny and enhance user understanding. Through a comparative review of a variety of stablecoin designs and their implications for financial markets, this paper gives a summary of the challenges and opportunities stablecoins pose with the evolving financial ecosystems that can support more informed adoption, policy debates, and future technical work.