By admin Here are the 5 most popular stablecoins, including their launch dates, key features, and a comparison based on stability, transparency, and use cases:
1. Tether (USDT)
- Launched: 2014
- Type: Fiat-collateralized (USD)
- Market Cap (2024): ~$110 billion (largest stablecoin)
- Issuer: Tether Ltd.
- Pros:
- Most widely adopted (used in trading pairs across exchanges).
- High liquidity.
- Cons:
- Controversial over reserve audits (settled $41M fine with CFTC in 2021 for misstating reserves).
- Centralized control.
2. USD Coin (USDC)
- Launched: 2018
- Type: Fiat-collateralized (USD)
- Market Cap (2024): ~$30 billion
- Issuers: Circle & Coinbase (regulated entities)
- Pros:
- Fully audited, transparent reserves (held in cash & short-term U.S. Treasuries).
- Trusted by institutions.
- Cons:
- Can freeze funds (compliant with U.S. sanctions, e.g., blocked Tornado Cash addresses in 2022).
3. Dai (DAI)
- Launched: 2017
- Type: Crypto-collateralized (backed by ETH, USDC, etc.)
- Market Cap (2024): ~$5 billion
- Issuer: MakerDAO (decentralized)
- Pros:
- Decentralized, no single entity controls it.
- Overcollateralized for stability.
- Cons:
- Complexity (relies on smart contracts).
- Partially backed by centralized assets like USDC.
4. Binance USD (BUSD)
- Launched: 2019
- Type: Fiat-collateralized (USD)
- Market Cap (2024): ~$1 billion (declining due to regulatory issues)
- Issuers: Binance & Paxos
- Pros:
- Regulated by NYDFS (New York Department of Financial Services).
- Cons:
- Paxos halted new BUSD minting in 2023 after SEC lawsuit (considered unregistered security).
- Binance promotes its own stablecoins now (e.g., FDUSD).
5. TrueUSD (TUSD)
- Launched: 2018
- Type: Fiat-collateralized (USD)
- Market Cap (2024): ~$2 billion
- Issuer: TrustToken
- Pros:
- Regular attestations (not full audits).
- Used in Binance’s zero-fee trading pairs.
- Cons:
- Less transparent than USDC.
- History of minting issues (e.g., paused minting in 2023 due to security concerns).
Comparison Table
| Stablecoin | Launch Year | Type | Backing | Transparency | Decentralized? | Key Risk |
|---|---|---|---|---|---|---|
| USDT | 2014 | Fiat (USD) | “Reserves” (cash, loans) | Low | ❌ No | Audit disputes |
| USDC | 2018 | Fiat (USD) | Cash + U.S. Bonds | High | ❌ No | Regulatory freezes |
| DAI | 2017 | Crypto (ETH, USDC) | Overcollateralized | Medium | ✅ Yes | Crypto market crashes |
| BUSD | 2019 | Fiat (USD) | USD reserves | Medium | ❌ No | Regulatory shutdown |
| TUSD | 2018 | Fiat (USD) | USD reserves | Medium | ❌ No | Minting halts |
Key Takeaways:
- USDT dominates in liquidity but lacks transparency.
- USDC is the most trusted for regulation but is centralized.
- DAI is the top decentralized option but depends on USDC.
- BUSD is fading due to Binance’s legal troubles.
- TUSD is growing but has had operational issues.
For trading, USDT/USDC are safest. For DeFi, DAI is preferred. Avoid algorithmic stablecoins (like the failed UST).
Nothing on this website is financial advise.