18 Stablecoins to Know

Stablecoins are a type of cryptocurrency meant to be “pegged” to or closely match the value of another currency or financial asset — like the United States dollar or gold — to stabilize its pricing in the cryptocurrency market. True to their name, stablecoins are intended to be a stable crypto option to invest in, especially when compared to currencies that can have high volatility, like Bitcoin or Ether.

With the signing of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) in July 2025 — which provides regulatory clarity and stronger consumer protections for stablecoins in the United States — the creation and adoption of crypto is only expected to increase, leading to a plethora of new coins entering the market.

While stablecoins only make up a portion of the larger crypto market, they are popular among people who want to participate in the decentralized finance system.

What Is a Stablecoin?

A stablecoin is a cryptocurrency with a value that is tied to that of another financial asset like gold, the U.S. dollar or a fiat currency. This way, the prices of stablecoins remain steady and serve as a safer alternative to more volatile cryptocurrencies.

To maintain the prices of stablecoins, some issuers claim to have dollars or other physical assets that are equal to the total volume of stablecoins issued. For others, they may use an algorithmic method to automatically encourage the sale of coins to regulate their value relative to the dollar.

As with any other cryptocurrency investment, even stablecoins can be volatile and susceptible to bugs, errors and loss. Be sure to only use crypto exchanges and crypto wallets that are secure and manage your finances responsibly.

Types of Stablecoins

Depending on the mechanism used to stabilize their value, stablecoins can be organized into three different buckets: 

1. Algorithmic Stablecoins

Algorithmic stablecoins use algorithms and smart contracts to manage the supply of the tokens issued. The system will reduce the token supply if the price falls below whatever fiat currency it tracks through methods like burning or buybacks. If the price surpasses the value of the fiat currency, new tokens will be put into circulation to reduce the stablecoin’s value. 

2. Crypto-Backed Stablecoins

Crypto-backed stablecoins use other cryptocurrencies as collateral and smart contracts to monitor the minting and burning of the coin. This is intended to make the process more reliable, since users can independently audit the contracts. Some of these crypto-backed stablecoins are also run by DAOs, where the community can vote on changes. 

3. Fiat-Backed Stablecoins

Fiat-backed stablecoins use government-issued currency like the U.S. dollar as collateral. Users can convert from fiat into a stablecoin and vice versa at whatever the pegged rate is. And if the price of the coin falls below the underlying fiat, investors can use arbitration methods to bring the price back to a fixed rate — simultaneously purchasing and selling the same asset on different markets.

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Top Stablecoins to Know

1. Tether (USDT)

Tether USDt (USDT), the company’s namesake currency, is one of the oldest stablecoins on the market. Tether has variants of its stablecoin pegged to other fiat currencies outside of the U.S. dollar, including to the Mexican peso (MXNt) and Chinese yuan (CNHt). It also has a token backed by physical gold known as Tether Gold (XAUt).

2. USD Coin (USDC)

USD Coin (USDC) is a popular stablecoin designed to maintain a 1:1 value with the U.S. dollar. Launched in 2018, it was originally managed by the Centre Consortium, a partnership between Circle and Coinbase. However, as of August 2023, Circle has taken over full governance of USDC. It is used for instant transactions on crypto exchanges and can be integrated into apps and decentralized applications (dApps).

3. Ethena USDe (USDE)

Ethena USDe (USDE) is a “synthetic dollar” on the Ethereum blockchain that maintains its stability through a delta-neutral hedging strategy. This involves generating yield by simultaneously holding a long position in a crypto asset while taking a short position in its perpetual futures contract. While this model has led to rapid growth, it carries unique risks, including exposure to fluctuating funding rates, reliance on centralized exchanges and potential liquidation events.

4. USDS (USDS)

USDS is a stablecoin that serves as an upgraded version of the DAI coin, designed to power the Sky ecosystem. It is one of the native currencies of the decentralized Sky Protocol, allowing users to upgrade DAI to USDS at a 1:1 rate. By holding USDS, users can earn rewards and access non-custodial savings on the Sky Protocol.

5. Dai (DAI)

Dai (DAI) is a decentralized stablecoin that runs on the Ethereum blockchain, governed by the MakerDAO platform. It maintains its U.S. dollar peg by being overcollateralized by a mix of cryptocurrencies and real-world assets, including a significant portion of other stablecoins and U.S. Treasury bonds. While the DAI coin is still active, the DAI platform has undergone a rebrand to Sky and the introduction of a new stablecoin, USDS, that is upgradeable from DAI.

6. World Liberty Financial USD (USD1)

USD1 is a digital dollar stablecoin offered by World Liberty Financial in partnership with BitGo. It is fully backed by and redeemable 1:1 for U.S. dollars and U.S. Government Money Market Funds. The USD1 stablecoin is multichain, allowing for fast, global and cost-effective transactions, with monthly attestation reports published for transparency.

7. Currency One USD (C1USD)

Currency One USD (C1USD) is a USD-pegged stablecoin issued by Kinesis Money, designed for spending, sending and trading. It offers a 7.5 percent introductory annual percentage yield (APY) to verified users, with no lock-up period. C1USD is multichain, supported on Stellar and ERC-20 networks and has a high initial market cap of $2.55 billion.

8. PayPal USD (PYUSD)

PayPal USD (PYUSD) is a U.S. dollar-pegged stablecoin issued by Paxos Trust Company and launched by PayPal. It is an ERC-20 token on the Ethereum blockchain, with a value backed 1:1 by U.S. dollar deposits, short-term U.S. treasuries and other cash equivalents. PYUSD can be bought, sold and transferred within PayPal and Venmo, and used for payments at merchants who accept PayPal.

9. USDtb (USDTB)

USDtb is a stablecoin described as “digital dollars for the internet economy” backed by institutional-grade tokenized treasury funds, specifically BlackRock’s BUIDL fund. It is powered by Ethena Labs and can be minted and redeemed directly on-demand. Through a partnership with Anchorage Digital, USDtb is set to become a U.S. federally regulated payment stablecoin.

10. Falcon USD (USDF)

The USDF stablecoin is an overcollateralized synthetic dollar developed by Falcon Finance, designed to unlock liquidity from various crypto assets. It is backed by a diversified set of collateral, including stablecoins and more volatile cryptocurrencies like Bitcoin and Ethereum. The protocol maintains its 1:1 peg to the US dollar through a combination of delta-neutral trading strategies and arbitrage mechanisms.

11. Pax Gold (PAXG)

Pax Gold (PAXG) is a digital asset issued by Paxos, with each token representing one fine troy ounce of a London Good Delivery gold bar stored in secure vaults. It operates as an ERC-20 token on the Ethereum blockchain, providing investors with a liquid and accessible way to own gold without the burdens of physical storage. PAXG holders have legal ownership of the underlying physical gold, which is audited monthly to ensure a 1:1 backing of tokens to gold.

12. First Digital USD (FDUSD)

Created by First Digital Labs, First Digital USD (FDUSD) is a stablecoin designed to maintain a 1:1 peg with the U.S. dollar, backed by cash and cash equivalents, including U.S. treasury bills. The reserves are held in segregated, bankruptcy-remote accounts with a regulated custodian and are subject to monthly third-party audits for transparency. FDUSD is available on a number of blockchains, including Ethereum, BNB Chain, Sui, Solana, TON and Arbitrum.

13. USDX (USDX)

USDX by Stables Labs is a synthetic USD stablecoin that offers a crypto-native solution to avoid reliance on traditional banking infrastructure. Its stability is maintained through a delta-neutral portfolio strategy, which uses multicoin arbitrage and delta hedging with derivatives. USDX also acts as a multiple-layer savings tool that provides access to crypto ecosystem yield in USD denomination.

14. TrueUSD

TrueUSD (TUSD) is a U.S. dollar-pegged stablecoin that uses Chainlink’s Proof of Reserve to provide real-time, on-chain verification of its 1:1 USD backing. The collateral is held in escrow accounts by regulated financial institutions. TUSD is widely available across numerous exchanges and public blockchains like Ethereum, TRON and BNB Chain for trading and use in DeFi applications.

15. Legacy Frax Dollar (FRAX)

FRAX, now referred to as the Legacy Frax Dollar, is a stablecoin from Frax Finance that operates on a unique “fractional-algorithmic” model. This means its value is maintained through a combination of collateral — such as other stablecoins — and an algorithmic mechanism. While FRAX served as the protocol’s original stablecoin, it has since been superseded by the fully collateralized Frax USD (frxUSD) as the protocol’s primary offering.

16. STASIS EURO (EURS)

STASIS EURO (EURS) is a digital token from STASIS that is pegged 1:1 to the Euro, with its reserves held in Central Bank accounts, bank deposits, and government securities. It operates on multiple blockchains, including Ethereum and Polygon, and claims to be the world’s largest Euro-backed digital asset. STASIS provides transparency through regular attestations and Chainlink’s Proof of Reserve for real-time, on-chain audits.

17. Gemini Dollar (GUSD)

Gemini Dollar (GUSD) is an ERC-20 token on the Ethereum blockchain that is fully regulated by the New York State Department of Financial Services. Each GUSD is backed 1:1 by U.S. dollar reserves, which are held in FDIC-insured bank accounts and short-term U.S. Treasury obligations and are subject to monthly independent audits. GUSD is used for a variety of purposes, including global payments, trading and decentralized finance applications.

18. Liquity USD (LUSD)

Liquity USD (LUSD) is a decentralized stablecoin minted by users on the Liquity Protocol, pegged to the U.S. dollar and backed by Ether (ETH) collateral. The protocol maintains a minimum collateralization ratio of 110 percent and offers 0 percent interest loans. Its stability is ensured by a Stability Pool containing LUSD, and by fellow borrowers who collectively act as guarantors.

Frequently Asked Questions