1. Tether
Tether, often known as USDT, is a cryptocurrency that differs from other digital currencies due to a special feature. It is tied to the US dollar; one dollar is always worth the same amount of it. Overall, Tether is a stablecoin created to stabilize cryptocurrency trade.
Tether operates by tying the value of the cryptocurrency to the value of an actual asset, which is where the US dollar is. To do this, the business has reserves of US dollars equivalent to the whole amount of Tether in use. Tether Limited has one US dollar in reserve for each Tether token that is produced.
2. USD Coin
Stablecoin USD Coin (USDC) has swept the cryptocurrency community. In the unstable world of cryptocurrencies, USDC, a digital currency launched in 2018, offers a solid and dependable method of payment because it is tethered to the US dollar. Anyone with an Ethereum wallet can access USDC, an ERC-20 token that runs on the Ethereum Blockchain.
USDC has emerged due to its accessibility, openness, and stability. It can be a preferable option for traders, investors, and companies searching for a stable virtual currency that is not prone to the volatility of other cryptocurrencies like Bitcoin and Ethereum. After Tether (USDT), USDC is presently the second-largest stablecoin in terms of market capitalization.
3. Binance USD
Binance USD is a stablecoin that has a 1:1 ratio and is based on the US dollar. Accordingly, one BUSD is equivalent to one US dollar. Paxos, a registered financial firm that has the equivalent number of US dollars in reserve, is the entity that issues Binance USD.
To provide traders with a stable and dependable cryptocurrency that is not susceptible to the price fluctuation of other cryptocurrencies, Binance, one of the biggest cryptocurrency exchanges in the world, teamed up with Paxos to launch BUSD in 2019. BUSD can be used for trading, investing, and making purchases of goods and services. It is accessible on the Binance exchange in addition to other well-known exchanges.
4. DAI
MakerDAO, a decentralized autonomous organization (DAO), constructed on the Ethereum Blockchain, is the creator of the stablecoin Dai. Rune Christensen established MakerDAO in 2014 to develop a decentralized stablecoin that would allow anyone, regardless of location or financial situation, to take part in the global economy.
Dai’s basic idea is that it is a cryptocurrency backed by other cryptocurrencies acting as collateral. This implies that a specific quantity of Ethereum is used to support each unit of Dai, ensuring the stablecoin’s value stability.
5. TrueUSD
TrueUSD was launched in 2018 by TrustToken, a fintech company that specializes in tokenized asset creation. The collateralization concept of TrueUSD is one of its distinguishing characteristics.
TrueUSD is entirely backed by US dollars denominated in escrow accounts, in contrast to other stablecoins that could rely on a mix of assets or algorithms to preserve their worth. This indicates that an equivalent number of US dollars is kept in reserve for each TUSD token in use. To guarantee accountability and transparency, TrustToken additionally offers daily attestations from an impartial accounting firm confirming that US dollars are kept in reserve.
