Bitaigen Research In the blockchain ecosystem, price volatility is often the biggest concern for investors. This article, compiled by the Bitaigen editorial team, outlines the core concepts and mainstream categories of stablecoins, helping you quickly grasp their operating mechanisms and real‑world use cases, and understand the key tool for preserving value in digital‑asset trading. Subsequent sections will further dissect the characteristics and risks of each coin, making it well worth a thorough read.
What Is a Stablecoin?
A stablecoin is a cryptocurrency that is pegged to a fiat currency, commodity, or other asset and is designed to maintain a relatively fixed exchange rate, keeping its price stable over short periods with minimal fluctuation. It can also be used for cross‑chain transfers and payments. The defining feature of a stablecoin is that its price moves only marginally within a given time frame, most commonly anchored 1:1 to a fiat currency such as the US Dollar (USD) or to other physical assets. Within the blockchain ecosystem, it functions as a unit of account, providing liquidity for digital assets while also serving as a hedge when market prices decline. *For users in the United States, the stablecoin ecosystem is accessible via Binance.US rather than the global Binance platform.* *Note: Gains from trading or holding stablecoins may be subject to tax in your local jurisdiction, so consult a tax professional if needed.*
Which Stablecoins Exist?
- Tether (USDT)
Issued by Tether Ltd., USDT was launched in 2015 and quickly became one of the most popular stablecoins. It achieves a 1:1 peg to the US Dollar through fiat reserves, offering a low‑cost, cross‑platform channel for moving value.
- TrueUSD (TUSD)
Launched by TrustToken, TrueUSD employs a publicly transparent audit mechanism. Since its first independent audit in March 2018, roughly US $1.8 million of reserve funds have been verified to back its value, keeping the price close to 1 USD.
- Dai (DAI)
A decentralized stablecoin built on Ethereum, Dai maintains its US Dollar peg through smart contracts and Collateralized Debt Positions (CDPs). Issuance and redemption are performed entirely by users who lock up collateral, giving Dai a high degree of decentralization.
- USD Coin (USDC)
Co‑issued by Coinbase and Circle, USDC emphasizes financial and operational transparency. Fiat‑to‑crypto conversions are handled through official applications, and every bank transfer and redemption event is recorded on‑chain for auditability.
- Paxos Standard (PAX)
Issued by Paxos Trust Company, PAX is a regulated stablecoin listed by numerous exchanges as a mainstream asset. Its 1:1 USD peg is backed by a regulated dollar reserve, facilitating payments and settlements.
- BitUSD (BitUSD)
One of the early stablecoins, BitUSD later incorporated futures, gold, silver, and other diversified assets to improve stability. Unlike Tether, BitUSD’s backing portfolio is more varied, aiming for broader asset coverage.
- EOSDT
A decentralized stablecoin issued on the EOS blockchain by the Equilibrium platform. Each EOSDT token is pegged 1:1 to the US Dollar, and users may choose which underlying assets to collateralize when generating the token.
- Gemini Dollar (GUSD)
Issued by Gemini Trust Company (founded by the Winklevoss twins) and compliant with the ERC‑20 standard, GUSD is pegged 1:1 to the US Dollar. All reserve funds are held in regulated U.S. banks.
- Binance GBP (BGBP)
Binance’s British‑pound‑pegged stablecoin, with all funds stored in Binance’s own accounts, providing GBP‑denominated trading and payment solutions. *U.S. residents should access Binance’s services through Binance.US where applicable.*
- StableUSD (USDS)
Initiated by Stably, USDS is backed by a US‑regulated trust company, Prime Trust, which holds the dollar reserves that guarantee a 1:1 peg.
The list above comprises the most common stablecoin types currently available on the global market. If you wish to explore more about stablecoin use cases and technical fundamentals, feel free to follow other articles from Bitaigen (比特根)!
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