What is a stablecoin? A stablecoin is a cryptocurrency pegged to other assets like the dollar, euro, or gold. They help crypto investors avoid volatility in the markets and have plenty of other real-world use cases too. Stablecoin is short from a stable value coin.
We have compiled a comprehensive stablecoin list of all essential stablecoins that are currently tradable. Market focus on stablecoins, once considered the unappealing part of the market, is surging. Let’s find out why is the market increasingly interested in stablecoins. What does this mean for the cryptocurrency ecosystem as a whole?
Top Stablecoin Projects
Here’s a list of some stablecoin projects that we reviewed. Since there are many stablecoins already on the market, this is not meant to be an exhaustive list, but rather an overview of the most important stablecoin projects.
Tether Stablecoin – USDT
Tether is the biggest cryptocurrency linked to US dollar deposits. They call it digital money for a digital age. It has been in circulation since 2014 and accounts for about 90 percent of the total market value of all stablecoins. It is the first on our stablecoin list and TOP10 cryptocurrency in the world. But in recent months, investors have claimed that Tether has repeatedly failed to provide sufficient evidence that it has the dollars on deposit that it claims to have. Tether claims that it has enough US dollar reserves. It is available on every major exchange though it was introduced to the world by Bitfinex.
Coinbase Stablecoin – USDC
Coinbase and Circle – two exchanges – have created a new stable coin named USD Coin (USDC). A fiat to blockchain solution. Tradable at the biggest cryptocurrency exchanges right now, this looks like the best stablecoin at the moment.
Most recommended on our stablecoin list. The project has been backed by over $250,000,000 of investment from leading global financial businesses and institutions like Goldman Sachs. Visa also announced that from today Circle will help Visa card issuers to enable sending/receiving USDC payments.
Follow this stablecoin on Twitter with $USDC hashtag. On Binance, currently the biggest exchange by trading volume, you can trade USDC against its own token Binance Coin (BNB) and Bitcoin (BTC). Andy finally, with USDC you can even pay taxes in Bermuda.
Dai Stablecoin – DAI
This is a new approach to stablecoins – decentralized stablecoin. DAI does not have USD backup like TUSD. Instead, it uses Ethereum as collateral. It’s a classic example of a stablecoin that is backed by other cryptocurrencies, known as crypto-collateralized stablecoin. During periods of high market instability, DAI offers a safe harbor to store value without having to exit the crypto space. Critics claim that DAI is too complex for traditional market players. Probably that’s why DAI’s acceptance as a stablecoin is quite slow. Learn more about it on MakerDAO. Nevertheless, you can easily buy it on Binance.
Binance Stablecoin – BUSD
Binance has created highly regulated 1:1 USD-backed crypto stablecoin. These are digitised US Dollars and are always purchased and redeemed at 1 BUSD for 1 US dollar.
Paxos Stablecoin – PAX
PAX – Paxos Standard Token – is a regulated crypto asset by the New York State Department of Financial Services. It is fully collateralized 1:1 by the U.S. dollar. They keep funds in dedicated omnibus cash accounts at U.S. banks. Exchange US dollars for Paxos Standard Tokens to move money anywhere, anytime with instant transactions. PAX combines the stability of the dollar with the efficiency of blockchain technology.
If you own PAX, depositing PAX to BlockFi will earn monthly compounding interest at an 8.6% APY.
Gemini Stablecoin – GUSD
The stablecoin GUSD is issued by regulated crypto exchange Gemini. The New York state regulator approved this dollar-pegged stablecoin, GUSD becoming world’s first regulated stablecoin. They created Gemini Dollar to build a strong link between cryptocurrency and the traditional financial system. Like other stablecoins, it is expected to serve as a hedge against the volatility of cryptocurrencies.
TrueUSD TrustToken – TUSD
It is a USD-backed stablecoin you can exchange and trust. Compared to Tether, the project brings in way more transparency with regular auditing. It offers legal commitments to exchange the token for USD with full collateral. Holders who pass verification can redeem TUSD for USD in the TrueUSD escrow account. The company works with listed trusts and banks to maintain a transparent pool of USD backing its tokens. TrueUSD also plans to support precious commodities (gold, silver) and assets (stocks, real estate) to back the coin. You can trade it against BTC, ETH, and Tether on many exchanges. Besides Tether, this coin usually has the biggest volume from all coins on our stablecoin list. The biggest exchange that supports TUSD is Bittrex.
sUSD – SUSD
Decentralized exchange Synthetix is behind a new stablecoin called sUSD. It is designed to enable everyday cryptocurrency purchases using a stable medium of exchange. The release of sUSD marked the launch of the Synthetix payment network. This network uses a novel stability mechanism that rewards coin-holders for providing stability to other users. Coin with the smallest marketcap on our stablecoin list. Get it on Kucoin.
Carbon Stablecoin – CUSD
New York-based blockchain startup Carbon-12 Labs (better known as “Carbon”), which develops a stable coin called CarbonUSD (CUSD), announced that CUSD was available on the EOS platform. CarbonUSD is a price-stable cryptocurrency that is fully-collateralized 1:1 by U.S. dollars held in FDIC-insured accounts. Companies jingle is “Carboncoin is an energy-efficient digital currency that plants trees.” Available on Yobit.
Interest Payments on Stablecoins
Become BlockFi Lender and Get 8%
Similarly, you can also become a lender on BlockFi platform (8%). BlockFi Interest Accounts (BIA) now support Paxos Standard (PAX), Gemini Dollar (GUSD) and USD Coin (USDC). Find more platforms where you can receive interest on your stablecoins on our special page: crypto interest account.
12% APR with Interest Paid Out Weekly
Stablecoins are now earning up to 12% APR with interest paid out weekly directly to your Celsius wallet! Plus, they’re doubling down on CEL.
Nexo Offers Daily Interest Payments
Nexo offers daily interest payments to liquidity providers for bitcoin loan seekers on several leading stablecoins. This way you can earn smart passive income from just by holding them. When stored on the platform, Tether (USDT), TrueUSD (TUSD), Gemini Dollar (GUSD), USD Coin (USDC), Dai (DAI) and Paxos Standard Token (PAX) will generate a minimum 6.5 percent interest rate for those holding the currencies. You can also become a lender on Binance Lending platform (10% on USDT).
What is a Good Stablecoin
A good stablecoin combines the creditworthiness and price stability with the technological advantages of a cryptocurrency. This is a new kind of digital asset that is already widely available in the cryptocurrency markets. According to a stablecoin definition, a stablecoin is a cryptocurrency coin or token that is pegged to a stable asset. This makes stablecoins distinct from other cryptocurrencies, where the price is driven by market dynamics (supply and demand). Stablecoin price corresponds to the value of the pegged asset.
Stable Assets Behind Stablecoins
At the moment the most common stable asset behind stablecoins is simply fiat currency, the U.S. dollar. Some offer tokens tied to a basket of fiat currencies. Other coins in development are backed by gold, other cryptocurrencies including stable coins. Also, tokens that represent ownership in other physical assets, such as U.S. Treasuries appear.
Stablecoins: the best of both worlds?
Stablecoins are less exciting investments for speculators than other cryptocurrencies. However, supporters argue that stablecoins users get the best of both worlds – the low volatility of fiat currencies together with the advantages of digital currencies. As you probably know, the biggest advantages of cryptocurrencies are fast international payments, no need to own a bank account, and availability to anyone with an internet connection. Due to a bear market, the market for coins on this stablecoin list has exploded. Some crypto believers hope they could be the stepping stone that enables the wider adoption of cryptocurrencies. Meanwhile, pessimists argue stablecoins are just another attempt to keep the crypto dream alive as prices of most cryptocurrencies decline.
Despite the benefits, however, stablecoins have unique risks that are important for their users to understand.
Even though stablecoins could allow more people to use cryptocurrencies, it could also prevent some from using it. For example, creators of USDC explain that they have near-complete control over user accounts. They can freeze funds, terminate accounts, and even report accounts to the authorities.
Imagine you have a bank account, but you don’t know where it is located. Are your dollars in an onshore, offshore, in a state bank, or a federal bank? Knowing your counterparty is crucial in assessing the risk profile. Unfortunately, most stablecoin issuers do not provide transparency and visibility into the banks and financial institutions holding the corresponding fiat funds.
How stable are stablecoins? Stablecoin volatility might sound like an oxymoron, but it’s very much a daily occurrence.
Where to find the most important Stablecoins?
- You can find the most important stablecoins in one place. Huobi, a Singapore-based cryptocurrency exchange, now supports deposits, withdrawals and trading of PAX, TUSD, USDC, GUSD and USDT.
- Customers can also access all major stablecoins at Bitfinex, as they introduced USDC, True USD, Paxos, and Gemini USD to their existing Tether and Dai offering.