With new stablecoins mushrooming every day to support modern payment infrastructure, finding the best coin that guarantees stability and transparency can be difficult. Luckily, if you are a new investor looking to learn beyond understanding what a stablecoin is, we’ve done the hard yards for you. This top 10 stablecoins guide gives you a lowdown on how these coins work and which option is the best to invest in.
- Tether(USDT)
Managed by Tether Holdings Limited, the USDT coin is one of the most used stablecoins today. USDT currently has a market cap of over $183 billion and is expected to rise. USDT lives up to its name by providing a less volatile digital currency through the pegging of its value to the US dollar in the ratio of 1:1.
Holders of the USDT can exchange fiat USD currency for USDT by simply depositing the preferred amount of USD into the USDT reserve, and the equivalent USDT will be received in their wallet.
2. USD Coin (USDC)
The USD Coin is managed by Circle, a fintech company that regulates its stability by pegging it to the US dollar at a ratio of 1:1. This is achieved by reserving an equivalent amount of cash assets in segregated accounts at regulated US financial institutions. The accounts are overseen by Deloitte, whereas the reserves portfolio is held at the Bank of New York Mellon.
3. Dai (DAI)
Although DAI is a stablecoin, it differs from its previously mentioned counterparts in how it maintains its stability. Instead of being tethered to fiat currency or assets, DAI is backed by cryptocurrency; hence why we refer to it as a crypto-collaterized stablecoin.
DAI has found a lot of use as a store of value, collateral for loans, and repayment of loans in the Maker’s ecosystem. You can also buy DAI and swap it for other cryptos instead of buying other tokens with USD due to its ease of use.
4. Ethena USDe (USDe)
Ethena Labs launched the Ethena USDe in 2024 as a crypto native (built directly on blockchain technology) stablecoin designed to operate as a synthetic (artificially created) version of the US dollar. The tokens are backed by on-chain assets, such as ETH and BTC, as well as by holding an equal and opposite short position in the perpetual futures market.
USDe shakes off any price volatility when gains and losses on futures offset each other, if ever the price of the collateral moves up or down. It attracts a lot of investors because its two-token system offers high yields.
5. PayPal USD (PYUSD)
The PayPal USD (PYUSD) is a USD stablecoin issued by Paxos, backed by fiat currency, and integrated into the Venmo and PayPal user ecosystem. The stablecoin is used to facilitate fee-free transactions between Venmo and PayPal users. The PYUSD pegging is maintained through cash reserves as well as U.S Treasuries.
PYUSD can be used in a number of cases, including peer-to-peer payments, e-commerce check-outs through PayPal-accepting websites, and cross-border payments.
6. World Liberty Financial USD1 (USD1)
Launched by World Liberty Financial in March 2025, USD1 is designed to facilitate cross-border transactions, especially for institutional investors as well as DeFi enthusiasts. The token’s stability is maintained by tethering it 1:1 to the USD, and it’s backed by reserves in both cash deposits, treasury bills, and other cash equivalents. To ensure transparency, the World Liberty Financial usually publishes monthly reserve reports.
7. First Digital USD (FDUSD)
First Digital USD is another stablecoin that has been around for nearly two years now. Its reserves are held by the First Digital Trust Limited.
Although the FDTL company holds other assets at the firm, they do everything necessary to ensure there’s no commingling. This is emphasized by mandating that FDUSD should be held in highly liquid assets or cash to guarantee the 1:1 peg to the USD.
8. TrueUSD (TUSD)
TrueUSD is another stablecoin that is pegged to the USD with a circulating supply of 495 million as of this writing. It has live on-chain attestations of its reserves, which are done by independent auditing firms. This helps to boost its transparency and value in the minds of investors.
This stablecoin is also compatible with other trading platforms such as Pancakeswap and Ellipsis. This speaks a lot about its credibility and flexibility, which have gone a long way in enhancing its uses. Users of this stablecoin can now utilize it to trade in emerging cryptos as well as collateral for margin trading.
9. Binance USD (BUSD)
As a fiat-collateralized stablecoin, the Binance USD offers more than just mitigation against price risk; it gives investors the advantage of trading blockchain-based assets. Issued as ERC-20 tokens, the BUSD stablecoins, the first of the Binance Venus Project, are pegged 1:1 to the USD and backed by reserves held in US bank accounts owned by Paxos.
BUSD prides itself on its flexibility and accessibility. It offers quick and secure transactions in addition to being used for borrowing, lending, and cross-border payments.
10. USDD (USDD)
USDD, launched in May 2022 by the TRON DAO Reserve, is an over-collateralized decentralized stablecoin pegged 1:1 to the U.S. dollar. Unlike fiat-backed coins, USDD maintains its value using algorithmic mechanisms that adjust supply and demand to preserve stability.
USDD’s peg is backed by a collateralization ratio exceeding 200% thus offering protection against market volatility. Minting and redemption are handled by members of the TRON DAO Reserve.
Final Words and FAQs
Among the top stablecoins of 2025, USDC and PYUSD stand out as the most transparent and institutionally regulated options, offering strong reliability for investors prioritizing compliance and safety. Tether (USDT) remains dominant due to its vast liquidity and global acceptance, although questions around reserve transparency persist.
It is worth noting that no stablecoin is entirely risk-free. Smart investors diversify across multiple stablecoins by balancing between regulated fiat-backed and decentralized crypto-backed options.
– What is a stablecoin?
A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging its price to a reserve asset such as the U.S. dollar, the euro, or commodities like gold.
– Will XRP be a stablecoin?
No. XRP is not a stablecoin. It’s a digital asset used by Ripple Labs for cross-border payments. Its value fluctuates based on market demand.
– Is Bitcoin a stablecoin?
Bitcoin is a decentralized cryptocurrency whose price is determined purely by market forces. It is highly volatile and not pegged to any fiat or asset, making it the opposite of a stablecoin.
– Is Binance a stablecoin?
No, Binance is a cryptocurrency exchange, not a stablecoin. However, it launched Binance USD (BUSD) in partnership with Paxos as a regulated, fiat-backed stablecoin pegged 1:1 to the U.S. dollar.
