Stablecoins in the Crypto Market

Updated: Jan 17

Stablecoins are primarily used to facilitate trades on crypto exchanges. Like gold and the US Dollar, Stablecoins derive their value to a reserve asset. For that reason, some others like to call it cryptocurrency... but with a twist.


NOTE: Total supply figures were accurate as of August 2021 and will likely have increased since.

  1. Binance USD (BUSD)

  2. CELO Dollar (CUSD)

  3. DAI (DAI)

  4. Gemini Dollar (GUSD)

  5. Huobi HUSD (HUSD)

  6. OKEx Stablecoin (USDK)

  7. Paxos Standard (PAX)

  8. TerraUSD (UST)

  9. Tether (USDT)

  10. True USD (TUSD)

  11. USD Coin (USDC)

 

Binance USD (BUSD)

  • BUSD was formed using the talents of Charles Cascarilla (from Paxos), to create a 1:1 USD-backed stablecoin that could be officially issued by Binance

  • The coin launched on 5 Sep 2019, being bought up in large supply immediately

  • BUSD has been approved by the New York Department of Financial Services, and in order to further improve transparency, they perform a monthly auditing report, which is then published online for all stakeholders to see

  • BUSD is both an ERC-20 token and BEP-2 token

  • Binance USD aims to meld the stability of the US dollar with efficient blockchain technology

  • It was built to improve the larger financial ecosystem by creating a frictionless global network

  • Total supply: $12.3 billion+

 

CELO Dollar (CUSD)

  • Celo was founded by Rene Reinsberg, Sep Kamvar, and Marek Olszewski

  • Celo is an open platform project that aims to make financial tools equally accessible to those with a mobile phone, bypassing the need for a computer or laptop

  • Technologists, NGOs, and organisations committed to building an inclusive financial system see the application of cUSD for the emerging world as one of its finest attributes

  • cUSD is pegged to the US dollar

  • Value is sent via phone numbers that are tied to crypto addresses, making remittance faster and cheaper than many competitors

  • Total supply: $53 million

 

DAI (DAI)

  • By creating and applying an automated system of Smart Contracts on the Ethereum blockchain, DAI is able to maintain its USD peg

  • Dai was formed in 2014 by Danish entrepreneur, Rune Christensen, and falls under the MakerDAO umbrella

  • This stablecoin offers financial freedom with no volatility, decentralized governance and a growing ecosystem, all of which appeal to blockchain developers and investors

  • In 2017, DAI and its associated smart contracts were officially launched on the main Ethereum network

  • This stablecoin uses the Maker Protocol as a Multi-collateral Dai system

  • MakerDAO formed the Maker Foundation, run from Copenhagen, which is essentially an unbiased financial ecosystem to help build savings and borrowings services

  • Total supply: $6 billion+

 

Gemini Dollar (GUSD)

  • Gemini was founded by Cameron and Tyler Winklevoss in February 2014, with the Gemini Dollar (GUSD) being launched in September 2018

  • GUSD is a stablecoin pegged to and backed by US dollars

  • Gemini is also a fiduciary and qualified custodian for their own token

  • GUSD is an ERC-20 token running on the Ethereum blockchain

  • Designed to provide a transparent regulatory compliant connection between the traditional financial systems and the blockchain industry as a whole, which is more or less the entire aim of Gemini, which is the most legitimate and regulated exchange in the world

  • The Gemini Dollar, like other stablecoins, is different from Bitcoin and other volatile cryptocurrencies in the way that it maintains a steady value by pegging itself to the US dollar

  • Due to the small number of exchanges that hold it, and the low number of market pairs, it is markedly less popular than its stablecoin rivals

  • Total supply: $200 million+

 

Huobi HUSD (HUSD)

  • Frank Zhang is the founder and CEO of Stable Universal

  • Huobi USD was founded in Central District, Hong Kong, with the HUSD project’s development being announced in 2019

  • “The HUSD team is committed to providing a secure and interoperable product in the form of a dollar-pegged stablecoin”

  • The development team behind HUSD focused on security, liquidity and convenience, with the original intention to take the best parts of PAX, TUSD, and USDC, and GUSD and make a hybrid Chinese-owned USD-pegged stablecoin.

  • Ultimately, traders didn’t like trading it due to perceived opacity - as you can see from the other stablecoins, transparency is a must

  • Total supply: $480 million+

 

OKEx Stablecoin (USDK)

  • This little known Malta-based stablecoin was developed by OKLink and Prime Trust and launched in 2019

  • It can be purchased with 6 different fiat currencies - CNY, VND, GBP, RUB, EUR and TRY

  • The founder, or rather the Head of Operations for OKEx, who own the coin, is Andy Cheung

  • USDK can be used for both spot and derivatives trading, though it is only really used on the OKEx crypto exchange

  • Total supply: $28 million+

 

Paxos Standard (PAX)

  • Paxos was founded in 2012 by Charles Cascarilla and Rich Teo, and is based in New York City, with offices in London and Singapore too

  • Paxos Standard is a flat-collateralized stablecoin and has nothing to do with the Greek island of the same name

  • Paxos allows any user to exchange US dollars for the Paxos Standard Tokens, with its main goal being to stabilize the US dollar with blockchain technology. This service allows cryptocurrency exchanges like Binance to offer Paxos as a deposit method, with the process acting much like a wire transfer and giving an additional choice to investors

  • PAX was built in order to improve the larger financial ecosystem through the creation of a frictionless global network. In this regard, it has made solid contributions, and to the industry as a whole

  • Total supply: $950 million+

 

TerraUSD (UST)

  • TerraUSD and some other Terra-related cryptocurrency technologies were founded by Korean entrepreneurs Do Kwon and Daniel Shin in April 2019

  • UST is one of the newer stablecoins, having launched in September 2020 with the help and collaborative support of Bittrex Global. Since then, it has already overtaken PAX and GUSD with relative ease

  • It was created to deliver value to the Terra community and offer a scalable solution for DeFi amid the severe scalability problems faced by other stablecoin leaders like DAI

  • UST is also the native coin of the Terra Blockchain, which allows other projects like Mirror Protocol to mint fungible synthetic assets with UST as a pricing benchmark

  • Kwon is included in the Forbes 30 Under 30 list of the world's most successful entrepreneurs, giving further legitimacy to the project

  • It’s the first decentralized stablecoin that provides “interest earnings, incredible scalability, and easier interchain movement”

  • UST caught the attention of many investors, especially risk-averse individuals, when it began offering a 20% annual yield for fixed savings. Since it is pegged to the US dollar, this was a huge shock, especially when compared to the tiny percentages offered by banks

  • Total supply: $2.2 billion +

 

Tether (USDT)

  • Founders: Brock Pierce, Reeve Collins, and Craig Sellars

  • Tether was initially called Realcoin and the startup’s roots are found in Santa Monica, with the project being first announced by the founders in July 2014

  • The first USDT tokens were issued on 6 October 2014, on the Bitcoin blockchain

  • Tether issues their USDT tokens on Bitcoin (Omni and Liquid Protocol), Ethereum, EOS, Tron, Algorand, SLP and OMG blockchains, allowing for a great deal of flexibility by those performing transactions

  • Claims to be a token backed by real assets - the official line is “Every Tether token is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities” - this wording doesn’t make it clear that much of their reserves are crypto-based

  • Incorporated in Hong Kong, with offices in Switzerland

  • Total supply: $66 billion+

 

True USD (TUSD)

  • TrueUSD was launched by its parent company TrustToken, whose co-founder and CEO is Rafael Cosman, who studied Cryptography and Artificial Intelligence and was part of the Google Brain project

  • It first launched to a limited investor base in January 2018, and it claims to be “the first regulated stablecoin fully backed by the US Dollar

  • TrueUSD and TrustToken are based in the United States, with an HQ in California

  • The TrueUSD team’s intention was to build a coin that is stable and which can be used and trusted by them too. To drive this forward, they allow regular auditing, providing investors with peace of mind after the chaos of the 2017 ICO movement and a lack of transparency from many other projects

  • TUSD is targeted at large and institutional investors who want to mitigate and minimise risks

  • TrustToken allows their users to stake TUSD for interest returns, allowing them to make a passive income

  • Total supply: $1.3 billion+

 

USD Coin (USDC)

  • Jeremy Allaire is Co-Founder, Chairman and CEO of Circle, which also makes him the Operator of USDC

  • USD Coin runs on the Ethereum, Stellar, Algorand, and Solana blockchains, as well as on the Hedera hashgraph system

  • The USD Coin is managed by a consortium called Centre, which is a collaboration of two entities - Circle, and Coinbase

  • USDC was first announced on the 15th of May 2018 by Circle and was launched in September of 2018. The coin has been designed to help value exchange hands more efficiently on the open internet

  • With the most transparent proof of reserves in the stablecoin marketplace, many believe USDC is the most trustworthy USD-pegged cryptocurrency and offers a sustainable store of value

  • Total supply: $27 billion+

 


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