"Crypto is highly volatile." No, now it's not completely correct. Actually, "Cryptos other than Stablecoins are volatile." Indeed the path to stability start with stablecoins in crypto market. Today we will have a look at top 5 companies that are issuing stablecoins. With that being said let's first understand what are stablecoins?
Stablecoins, as their name suggests, are stable in value. Their value is directly pegged to either a currency or an asset. For example, 1 USDT remain in close match to the value of 1 US Dollar and PAXG matches its value with that of Gold.
While there are three major kinds of Stablecoins in the market, but only those that are backed by fiat currency; dominantly by US Dollar, have been more successful. Others like asset backed Stablecoins and Cryptocurrency backed stablecoins do exist but aren't as popular as USD backed Stablecoins.
Last year's crash of UST (Terra Stablecoin) has immensely disgraced this category of coins. With UST's departure, the pegging of a stablecoin with any crypto has now become 'a suicidal adventure'. Now it seems that in future, no stablecoin will ever become popular with a match up to another crypto. Another news that's been making headlines recently is 'Binsnce halting support for BUSD (Binance USD), a stablecoin that has branding from Binance. Nevertheless, there are still many options for stablecoins and you may chose which one suits your needs. Here are brief but important details of them one by one.
While USDT has been named as 'the lifeblood of crypto ecosystem,' TETHER is the company which has issued multiple stablecoins based on various fiat currencies. Other stablecoins that TETHER issues include EURt (Euro TETHER), MXNt (Mexican Peso TETHER), CNHt (Chinese Yuan TETHER), XAUt (Gold TETHER). TETHER is dominating the market with its Stablecoin USDt remaining right after Bitcoin and Ethereum at number 3 spot.
2. Circle
As Circle has to compete with Tether, it has USDC (US Dollar Coin) in its arsenal of Stablecoins. USDC has earned reputation and growth because it's been much more transparent than Tether. Circle also issues EURC (Euro Coin), which tells us that Circle intends to rival Tether in terms of variety of products.
MakerDAO issues DAI as stablecoin. Unlike USDT and USDC, DAI isn't backed by USD in any bank account. Instead it uses the collateral on MakerDAO platform to gain value. MakerDAO is a DeFi platform that performs lending and borrowing. As the platform uses multiple assets as collateral, these collatoral form the basis of DAI. DAI is currently at 19th rank in market cap.
Paxos Trust
Paxos Trust also issues multiple stablecoins. They have BUSD (Binance USD), PYUSD (PayPal USD), USDP (PAX USD) and a Gold backed PAXG. Paxos has been in the news more recently. Be it the launch of PYUSD, their partnership with PayPal, or be it stopping the minting for BUSD and BINANCE accepting that they had nothing to do with BUSD.
Trust Token
Trust token is an USA based fintech that issues multiple stablecoins pegged to different fiat currencies. However the successful one remains TUSD (True USD) that is pegged to US Dollar. Apart from TUSD, they issue TGBP (Great Britain Pound), TAUD (Australia Dollar), TCAD (Canada Dollar), THKG (Hong Kong Dollar). Apart from stablecoins, trusttoken has 'truefi' with an aim at DeFi.
So these are the top 5 stablecoins issuing companies. What do you think about them? Which one is better? And which would be your favourite choice to keep your money?
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