Find The Best Stablecoin

Stablecoins play an essential role in the cryptocurrency ecosystem and over the past year there has been an explosion in available liquidity and trading volume.

New use cases for stablecoins are continuing to evolve. Interest accounts, loans, and margin funding are just the beginning as blockchain technology continues to advance.

Blockfer has provided the stablecoin comparison research for you in an easy to understand format. Review and analyze different types of stablecoins depending on the factors that matter most to you:

  • Is trading your main priority?
  • Is the ease of personal storage essential to you?
  • Are you willing to compromise privacy for greater liquidity and insurance?
  • Are you looking to redeem your stablecoins for fiat?

There are several considerations when researching stablecoins and Blockfer is here to help.

Find the best stablecoin for your needs below.

Note: We’re always looking to improve and update our content and data. Please don’t hesitate to contact us with any suggestions

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8 Stablecoins filter

USD Coin Logo

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USD Coin

★★★★★ 4.8
  • Base Currency

    USD

  • Collateral Type

    Fiat-Backed

  • Blockchains

    Ethereum

  • Audit Frequency

    Monthly

USD Coin (USDC) is a stablecoin pegged to the US Dollar. Issued by Circle, USDC is backed 1:1 to the US Dollar with customer funds held in segregated FDIC insured bank accounts. USDC is the second largest stablecoin by market cap and is exclusively issued as an ERC-20 on the Ethereum blockchain.

Pros

  • Coinbase Featured Stablecoin - Coinbase has selected USDC as it’s featured stablecoin guaranteeing an exchange rate of 1:1 (USDC:USD). USDC can easily be withdrawn for USD to user bank accounts.
  • Liquidity - USDC is the second most most liquid stablecoin behind USDT and is traded on a majority of the biggest cryptocurrency exchanges.
  • Monthly Audits - Audits are performed regularly by accounting firm Grant Thornton to ensure that USDC is backed 1:1 by US Dollars in segregated bank accounts. Circle, Ltd. frequently publishes these reports.

Cons

  • Centralized - USDC is minted, maintained, and operated by Circle, Ltd. Centralized stablecoins can be frozen or confiscated in cases where a user is deemed to have broken regulatory laws or acted in an illegal capacity with the asset.
  • Purchase & Redemption KYC - In order to redeem USDC for fiat, users must undergo KYC and provide identity documentation to Circle, Ltd. This is very standard procedure, and only a negative for privacy focused users.

Current Price

$1.00

Volume (24h)

$297,227,388

Market Cap

$2,768,394,061

Circulating Supply

2,769,760,800

Exchanges

Binance, Coinbase Pro, HitBTC

Company

Circle Internet Financial Limited

Paxos Standard Logo

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Paxos Standard

★★★★★ 4.5
  • Base Currency

    USD

  • Collateral Type

    Fiat-Backed

  • Blockchains

    Ethereum

  • Audit Frequency

    Monthly

Paxos Standard (PAX) is a stablecoin pegged to the US Dollar. Issued by the Paxos Trust Company, PAX is fully backed 1:1 to the USD. All client funds are audited, regulated, and held in segregated FDIC insured bank accounts.

Pros

  • Regulated & Compliant - Paxos Trust Company, LLC is regulated by the NYDFS (New York State Department Of Financial Services).
  • Liquidity - Audits are performed monthly by the Withum accounting firm to ensure that PAX is fully collateralized at 1:1 by US dollars. These reports are then published on the Paxos Trust Company website for public viewing.
  • Monthly Audits - Audits are performed regularly by accounting firm Grant Thornton to ensure that USDC is backed 1:1 by US Dollars in segregated bank accounts. Circle, Ltd. frequently publishes these reports.

Cons

  • Centralized - PAX can be frozen, confiscated, or censored by authorities in the event that they believe any illegal activity has occurred or terms and conditions have been broken.
  • Privacy - Trading PAX in large amounts on cryptocurrency exchanges will require KYC. In addition to this, any user looking to purchase or redeem PAX with fiat will be required to undergo KYC and submit personal identification documents.

Current Price

$1.00

Volume (24h)

$139,816,945

Market Cap

$245,163,592

Circulating Supply

244,951,954

Exchanges

Binance, OKEx, Bitmax

Company

Paxos Technology Solutions, LLC

TrueUSD Logo

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TrueUSD

★★★★★ 4.3
  • Base Currency

    USD

  • Collateral Type

    Fiat-Backed

  • Blockchains

    Ethereum

  • Audit Frequency

    Monthly

TrueUSD (TUSD) is a stablecoin pegged to the US Dollar. Issued and maintained by TrustToken, TUSD is recognized as the first stablecoin launched with a core focus on transparency. Users can purchase and redeem TUSD at a 1:1 rate on the TrustToken platform for US Dollars.

Pros

  • Regulated & Compliant - Paxos Trust Company, LLC is regulated by the NYDFS (New York State Department Of Financial Services).
  • Liquidity - TrueUSD trades with reasonable volume on several top exchanges, including Binance and Bittrex.
  • Audited Regularly - Audits are performed monthly by the accounting firm Cohen & Company, ensuring customers that TrueUSD tokens are in fact backed 1:1 by USD.
  • Multiple Currencies - TrustToken has issued TrueGBP, TrueAUD, & TrueCAD with more currencies planned in the future.

Cons

  • Centralized - TrueUSD can be frozen or even confiscated in the event that TrustToken has reason to believe users have broken the terms and conditions of use, more specifically - the laws and regulations the company abides by.
  • Privacy - Required for purchase and redemption. While we are hesitant to list this as a negative aspect, there are individuals in the blockchain space that believe privacy is mandatory.

Current Price

$1.00

Volume (24h)

$101,505,863

Market Cap

$288,538,655

Circulating Supply

287,433,840

Exchanges

Binance, HitBTC, OKEx

Company

TrustToken, Inc.

DAI Logo

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DAI

★★★★★ 4
  • Base Currency

    USD

  • Collateral Type

    Crypto-Backed

  • Blockchains

    Ethereum

  • Audit Frequency

    Public Smart Contract

DAI is a digital asset-backed, ERC-20 stablecoin pegged to the US Dollar. Issued by a smart contract platform on the Ethereum blockchain, DAI is governed and maintained by the MakerDAO Foundation.

Pros

  • Censorship Resistant - DAI is governed by smart contracts and therefore is the only stablecoin that cannot be seized or censored by governments or regulatory agencies.
  • Transparency & Auditability - DAI is collateralized by Ethereum which is immutably verifiable on the Ethereum blockchain.
  • Privacy - Transacting with DAI does not require any account creation or KYC processes. It is by far the most private stablecoin available.

Cons

  • Liquidity - DAI is only listed on a few major exchanges and does not have nearly as many trading pairs compared to centralized stablecoins such as USDT and USDC.
  • Dependent On Ethereum Collateral - DAI is collateralized by Ethereum which is a far more volatile asset than the US Dollar. Ethereum is orders of magnitude more likely to flash crash than fiat, introducing a much greater risk for DAI holders vs centralized stablecoins that are collateralized by fiat.
  • Peg Stability - DAI is exposed to greater USD price fluctuations compared to centralized stablecoins due to being collateralized by a volatile asset in Ethereum.

Current Price

$1.00

Volume (24h)

$75,508,937

Market Cap

$924,262,101

Circulating Supply

927,945,749

Exchanges

Coinbase Pro, HitBTC, Kraken

Company

MakerDAO Foundation

Paxos Gold Logo

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Paxos Gold

★★★★★ 4
  • Base Currency

    GOLD

  • Collateral Type

    Commodity-Backed

  • Blockchains

    Ethereum

  • Audit Frequency

    Monthly

PAX Gold (PAXG) is a stablecoin that provides holders with tokenized ownership of gold bullion stored in secure Brink’s vaults. PAXG tokens are backed by the equivalent fine troy ounces (t oz) of London Good Delivery gold bars, and may be redeemed as physical gold or as USD at the prevailing gold market price. This stablecoin is issued by the Paxos Trust Company, a regulated financial institution and qualified custodian.

Pros

  • Accessibility - PAXG provides access to fractional gold ownership with a low minimum of 0.01 PAXG, equivalent to about $15.
  • Liquidity - PAXG is currently listed on several reputable exchanges, including Kraken.
  • Regular Audits - PAXG is subject to regular financial audits from a third-party accounting firm in order to confirm that the tokens maintain a 1:1 parity with London Good Delivery gold. PAXG’s smart contract has been audited by three third-party blockchain security firms: Nomic Labs, Trail of Bits, and ChainSecurity.

Cons

  • Asset Protection Role - PAXG issuers must comply with court orders or other legal processes, and are required to freeze or seize assets involved in illegal activity. The Asset Protection Role also compels the issuer to freeze, unfreeze, or eliminate a specified user’s PAXG balance when ordered by the appropriate authorities.
  • KYC Requirements - Only verified users are able to buy, convert, or redeem PAXG tokens for USD or physical gold at approved locations. In the event that the issuer's Paxos Contractual Documentation is breached, they reserve the right to not issue, convert, or redeem a user’s PAXG tokens.

Current Price

$1,882.21

Volume (24h)

$1,912,415

Market Cap

$66,699,865

Circulating Supply

35,437

Exchanges

Kraken

Company

Paxos Technology Solutions, LLC

Gemini Dollar Logo

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Gemini Dollar

★★★★★ 3.5
  • Base Currency

    USD

  • Collateral Type

    Fiat-Backed

  • Blockchains

    Ethereum

  • Audit Frequency

    Monthly

Gemini Dollar (GUSD) is a stablecoin pegged to the US Dollar. Issued and maintained by Gemini Trust LLC, GUSD is audited monthly to ensure a 1:1 collateralization to the US Dollar with customer funds held in FDIC insured bank accounts. GUSD is the smallest centralized stablecoin by market cap and is exclusively issued as an ERC-20 on the Ethereum blockchain.

Pros

  • Monthly Audits - Gemini Trust’s US Dollar account balances are audited monthly by BPM, LLP to ensure that GUSD is fully collateralized 1:1 to US Dollars.
  • Regulated & Compliant - Gemini Trust LLC is fully regulated and licensed to operate GUSD by the NYDFS (New York Department Of Financial Services).
  • Strong Institutional Backing - Gemini Trust Company, LLC was founded by billionaire investors Tyler & Cameron Winklevoss and is extremely well funded.

Cons

  • Liquidity - GUSD does not have sufficient liquidity across the top cryptocurrency exchanges.
  • Centralized - GUSD is a centralized stablecoin issued and maintained by the Gemini Trust Company, LLC. All centralized stablecoins are subject to regulations and can therefore be censored, seized, or confiscated in the event that activity or transactions deemed illegal has occurred.
  • Redemption KYC - Privacy focused users should be aware that withdrawing GUSD for USD requires personal identification documents and passing of standard KYC procedures.

Current Price

$1.01

Volume (24h)

$1,249,673

Market Cap

$15,314,125

Circulating Supply

15,221,436

Exchanges

OKEx, Bitfinex, Gemini

Company

Gemini Trust Company, LLC

Tether Gold Logo

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Tether Gold

★★★★★ 3
  • Base Currency

    GOLD

  • Collateral Type

    Commodity-Backed

  • Blockchains

    Ethereum

  • Audit Frequency

    Never

Tether Gold (XAUt) is a tokenized version of gold issued by TG Commodities Limited. One XAUt token is equal to one troy fine ounce (t oz) of a London Good Delivery gold bar. Investors can redeem Tether Gold (XAUt) for physical gold bars or liquidate their tokens into fiat for USD wire transfers.

Pros

  • Easily Accessible - Tether Gold (XAUt) may be acquired through Bitfinex (for limited volume) without needing to deal directly with the issuer, providing retail investors with easy access to XAUt.
  • Verifiable Ownership - Tether Gold (XAUt) tokens are stamped with unique identifiers containing the serial numbers, weight, and purity of their physical gold equivalent. Using a gold allocation lookup service, holders can use this information to crosscheck the allocation and ownership of their tokens against the physical gold bars.
  • Zero Custody and Security Costs - Physical gold is expensive to store and transport securely. Tether Gold (XAUt) provides holders with all of the benefits associated with gold without the attendant custody and security costs.

Cons

  • Limited Trading Options - Tether Gold (XAUt) is currently only listed on Bitfinex. As Bitfinex has ceased service to US corporations and individual clients, this makes XAUt unavailable to US customers.
  • Regulatory Risk - There’s no information on whether Tether Gold (XAUt) has been examined or approved by any regulator under the laws of any jurisdiction.
  • Reserve Transparency - In the past, Tether Gold's (XAUt) issuer has been accused of lacking reserve management transparency. The fact that the issuer explicitly “reserves the right to modify and replace XAUt tokens from time to time in its sole discretion” in its whitepaper is a valid source for concern.
  • Excess Fees - Tether claims that there are no custody fees associated with Tether Gold (XAUt) holdings. Despite this, Tether charges a 25 basis point fee of the gold's value, plus a delivery fee when you redeem the token for physical gold bars. The issuer also charges a 25 basis point fee on the value of the XAUt when redeemed for fiat.

Current Price

$1,870.74

Volume (24h)

$73,059

Market Cap

$0

Circulating Supply

0

Exchanges

Bitfinex

Company

iFinex, Inc.

Tether Logo

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Tether

★★★★★ 2.5
  • Base Currency

    USD

  • Collateral Type

    Fiat-Backed

  • Blockchains

    Ethereum

  • Audit Frequency

    Infrequent

Tether (USDT) is a stablecoin pegged to the US Dollar. USDT is issued and maintained by Tether Holdings and was the first stablecoin to gain widespread adoption after launching in 2014. USDT tokens are issued on multiple blockchains and are redeemable at a 1:1 rate for US Dollars through the Tether platform.

Pros

  • Liquidity - USDT is currently the most liquid stablecoin available on the market, traded on almost every major non-us facing exchange.
  • Multiple Currencies - Tether also has EUR (EURT) and CNY (CNHT) stablecoins in circulation.

Cons

  • Regulatory Risk - Tether has long been a topic of discussion for governments and financial regulators. Recently, the NY attorney general sued Bitfinex and Tether alleging that they provided services to NY residents after they agreed to cease operations in the country. Users should be aware that is entirely possible that Tether’s legal issues will continue.
  • Transparency - Tether has not been transparent with their accounting throughout the years, causing many to doubt whether the stablecoin is actually backed 1:1 with US Dollars.

Current Price

$1.00

Volume (24h)

$22,027,757,062

Market Cap

$16,571,961,844

Circulating Supply

16,538,561,558

Exchanges

Binance, Huobi Global, HitBTC

Company

iFinex, Inc.

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Overall Rating

Features Overview

Ticker
Current Price
24H Volume
Market Cap
Circulating Supply
Market Rank
Collateral Type
Base Currency
Exchanges
Blockchains
Hardware Wallets
Deposit Insurance
Audit Frequency
Minimum Purchase
Minimum Redemption

Listed Exchanges & Market Data

Lenders - Loan Rates (APR)

Interest Accounts - Interest Rates (APY)

Company Facts

Legal Name
Incorporated Country
Headquarters
Year Founded
CEO
Total Employees
Regulators
Links
What are stablecoins?

Stablecoins are cryptocurrencies pegged to traditional assets. There are currently 4 main types of stablecoins:

  • Fiat Collateralized
  • Crypto Collateralized
  • Commodity Collateralized
  • Non Collateralized - (Algorithmic)

Detailed stablecoin information is available in our comprehensive Guide To Stablecoins.

How do stablecoins work?

It depends on the collateral mechanism in place for each type of stablecoin:

  • Centralized - Licensed and regulated stablecoins such as TUSD, PAX, & USDC issue or burn an ERC-20 token for every US Dollar that is deposited or withdrawn through their platform. Centralized stablecoins are collateralized by fiat deposits in bank accounts at a 1:1 ratio for every circulating stablecoin.
  • Commodity Backed - Values are pegged against the price of physical assets. Digix Gold Token (DGX) for example, enables purchasers to access tokenized gold as an investment.
  • Crypto Backed - Stablecoins like DAI use smart contracts to over-collateralize other crypto assets in order to maintain a 1:1 peg.
  • Algorithmic - Supply contracts and expands based on mathematical algorithms. Algorithm based stablecoins do not have collateral backing, and function similar to an automated central banking system.
Where can I buy stablecoins?

Buy With Cryptocurrency - Stablecoins are listed on all major cryptocurrency exchanges with 24/7 liquidity.

Buy With Fiat - Stablecoins can be purchased with fiat through the following options:

  1. Issuance Platforms - Such as TrustToken (TUSD) or Paxos Trust Company (PAX).
  2. Licensed Exchanges - Such as Coinbase, Kraken, and Bittrex.
What are the benefits of stablecoins?
  • Securely transfer fiat into crypto assets through licensed and regulated issuance platforms.
  • Trade crypto assets against stablecoin pairs on dozens of cryptocurrency exchanges.
  • Access to Crypto Loans using stablecoins as collateral.
  • Stablecoins can Earn Interest.
  • Hedge against market volatility in seconds by trading crypto assets into stablecoins.
  • Most stablecoins are ERC-20 compatible, users can store them in personal hardware wallets.
Are stablecoins anonymous?

This depends. Purchasing stablecoins with cryptocurrency on a decentralized exchange (or a centralized exchange in which the user has not completed KYC) can be relatively anonymous.

However, users looking to purchase (or redeem) stablecoins with fiat currencies directly from their respective issuers will need to complete the standard KYC (Know Your Customer) and AML requirements.

If anonymity is the priority, Blockfer recommends using DAI - the most decentralized stablecoin currently available.

How do stablecoins make money?

Stablecoins earn revenue for users by:

  • Margin Funding - Many exchanges act as a broker for margin traders looking to access additional trading capital at a premium. Users can loan their stablecoins to these traders with the exchange acting as an intermediary for an agreed upon interest rate.
  • Earning Interest - Users can deposit their stablecoins into cryptocurrency interest accounts with companies such as Nexo, Blockfi, and Celisus to earn interest on their balances.

Stablecoins earn revenue for issuers by:

  • Fees charged to customers during the process of redeeming stablecoins for fiat and converting fiat into stablecoins.
  • Centralized stablecoin issuers will often lend their fiat balance sheets to insured third party institutions and collect interest on the principal.
Can stablecoins earn interest?

Yes. Stablecoin owners can:

  • Lend their stablecoins to margin traders on exchanges, a process known as Margin Funding.
  • Deposit their stablecoins into cryptocurrency Interest Accounts.

More detailed information on this subject: Earning Interest On Your Stablecoins

Are there any risk with stablecoins?

There are risks with every financial instrument, including fiat currencies. It is important to remember that stablecoins are a new innovation still in the developing stages.

Risks may include:

  • Technology - Smart contract failure
  • Security - Hacks and theft
  • Regulation - Governments
  • Issuer Negligence - Insolvency
Are stablecoins securities?

Stablecoins and other cryptocurrencies are being closely monitored by financial regulators in the United States and around the world. At this time, there is no definite answer to this question.

Are there any stablecoins backed by gold or other precious metals?

Yes. Currently Digix Gold (DGX) offers an ERC-20 based token on the Ethereum blockchain. One DGX token is redeemable for one gram of gold.

What are the current use cases for stablecoins?
Can I store stablecoins in a hardware wallet?

Yes. Any Ethereum based ERC-20 issued stablecoin can be held in a personal Hardware Wallet. TrueUSD (TUSD), Paxos Standard (PAX), Gemini Dollar (GUSD), USD Coin (USDC), and DAI (DAI) are all ERC-20 compatible.

Blockfer strongly recommends the Ledger Nano S or Trezor hardware wallet for users with considerable stablecoin balances.

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