Stablecoin is a type of currency that offers stability in its value by being pegged to a reserve asset.
While decentralised cryptocurrencies such as Bitcoin and Ethereum are popular, their value can still be volatile. Stablecoins are widely used in exchanges as a trading tool to hedge against volatility, Trade BTC/USD market with ease and move money between exchanges quickly.
Many people also believe that stablecoin can help increase the usage of cryptocurrencies. They see it as a bridge to bridge the gap between FIAT currencies and completely decentralised cryptocurrencies in terms of usability.
These assets are tradeable commodities and monies:
- Oil and gas – crude oil, natural gas, gasoline, etc.
- Precious metals – gold, platinum, silver, copper, etc.
- FIAT currency – US Dollars, Hong Kong Dollars, Chinese Yuan, etc.
In some cases, the stablecoin can even be backed by other cryptocurrencies.
Here’s a list of stablecoins available in the market right now:
- Pegged to US Dollars
- Tether (USDT)
- USD Coin (USDC)
- TrueUSD (TUSD)
- Paxos Standard (PAX)
- Binance USD (BUSD)
- Gemini Dollar (GUSD)
- StableUSD (USDS)
- NuBits (USNBT)
- Universal Dollars (UPUSD)
- Pegged to other currencies
- bitCNY (BITCNY) – pegged to Chinese Yuan
- Sparkdex (HKD) – pegged to Hong Kong Dollars
- Backed by commodity or collaterals
- Dai (DAI) – backed by collateral
- STASIS EURS (EURS) – backed by collateral
- PAX Gold (PAXG) – backed by gold
- Neutral Dollar (NUSD) – backed by collateral
- Backed by other cryptocurrencies
- BITUSD – backed by BitShares (BTS)
- Universal Bitcoin (UPBTC) – backed by Bitcoin (BTC)
- USDx Stablecoin (USDX) – pegged to 35% USDC, 35% PAX and 30% TUSD