Top 10 Examples of Stablecoins Giving You Crypto Control

Stablecoins are a game-changer in digital finance that offers price stability in a volatile market. Leading examples include Tether (USDT), USD Coin (USDC), and DAI, all pegged to assets like the U.S. dollar or gold.

These stablecoins are designed to maintain their value, often by being linked to traditional assets like the U.S. dollar or gold.

If you want a safe way to use digital money without worrying about big price changes, stablecoins are a great choice. Keep reading to explore the top stablecoins and how they can enhance your experience in the digital economy!

10 Different Examples of Stablecoins Used in The Crypto Market 

Stablecoins prevent digital money from changing in value too much. Some are backed by real money, others by crypto, and some use special rules to stay steady. 

Let’s look at the top examples of stablecoins used in the crypto market.

1. Tether (USDT)

Tether (USDT) is a stablecoin that keeps its value equal to one U.S. dollar at all times. It was created in 2014 by Tether Limited Inc. to help people trade cryptocurrencies without worrying about price swings.

Each USDT token is backed by real-world reserves like cash and cash equivalents. However, the composition of these reserves has been a subject of ongoing scrutiny, with some questioning whether Tether holds enough assets to fully back all issued USDT.

By 2024, USDT had a market cap of over $140 billion and was held in more than 109 million wallets. 

It’s widely used for cross-border payments, trading, and as a store of value. Plus, it’s available on many different blockchains, making it easy to use worldwide!

2. USD Coin (USDC): 

USD Coin (USDC) is a stablecoin that stays equal to one U.S. dollar at all times. It was introduced in October 2018 by Circle and Coinbase under the Centre Consortium to offer a safe and reliable digital dollar.

Each USDC token is backed 1:1 by U.S. dollar reserves held in regulated financial institutions. These reserves are regularly audited to ensure transparency and trust.

By December 2024, USDC had a circulating supply of over 42 billion tokens, making it the second-largest stablecoin. It is widely used for trading, payments, and decentralized finance (DeFi). 

Its strong focus on regulations and transparency has made it a popular choice for businesses and institutional investors seeking stability in cryptocurrency.

3. PayPal USD (PYUSD)

PayPal USD (PYUSD) is a stablecoin created by PayPal in partnership with Paxos Trust Company. It is designed to stay equal to one U.S. dollar at all times.

PYUSD works smoothly within PayPal, making it easy for users to send money, make payments, and use digital dollars. It is backed by real U.S. dollars, government bonds, and other safe financial assets.

As it is directly linked to PayPal, millions of people can use it easily to shop online and make transfers. PYUSD aims to make digital payments faster and more secure while keeping its value stable in the cryptocurrency market.

4. TrueUSD (TUSD)

TrueUSD (TUSD) is a stablecoin that always equals one U.S. dollar. It was created by TrustToken to provide a safe and transparent digital dollar.

Each TUSD token is backed by real U.S. dollars stored in regulated bank accounts. To keep it trustworthy, independent third-party companies check the reserves regularly.

TUSD is designed to be stable, secure, and easy to use for trading, payments, and saving money in the digital world. Because of its strong focus on transparency, many people trust it as a reliable stablecoin in the cryptocurrency market.

5. Tether Gold (XAUt)

Tether Gold (XAUt) is a digital coin created by Tether Limited that represents real gold. Each XAUt token equals one troy ounce of pure gold kept in a secure vault in Switzerland. 

This lets people own and trade gold online without needing to store or carry it. It combines the safety of gold with the convenience of digital money, making it easy to buy, sell, and hold gold in a modern way.

6. PAX Gold (PAXG)

PAX Gold (PAXG) is a commodity-backed stablecoin issued by Paxos, designed to provide a seamless connection between digital assets and physical gold. Each PAXG token is fully backed by one troy ounce of gold held in regulated vaults. 

This structure ensures that PAXG maintains a stable value directly tied to the price of gold.

7. Dai (DAI)

Dai (DAI) is a decentralized stablecoin created by MakerDAO in 2017. It is pegged to the U.S. dollar, meaning 1 DAI = 1 USD. Unlike other stablecoins backed by real dollars in banks, DAI is supported by cryptocurrencies like Ethereum (ETH).

To create this stablecoin, users deposit crypto into MakerDAO’s smart contracts, which act like a digital vault. Because crypto prices can change, users must deposit more than the DAI they create—this is called over-collateralization.

As of December 2024, DAI has a $5.3 billion supply, making it the fourth-largest stablecoin. It is popular in decentralized finance (DeFi) for lending, borrowing, and payments. DAI also helps people without bank accounts access stable digital money.

8. Frax (FRAX)

Frax (FRAX) is a fractional-algorithmic stablecoin. It uses both collateral (real assets like USDC) and algorithms to stay equal to 1 U.S. dollar.

Real money reserves partly support Frax’s supply, while the rest is controlled by a smart system that adjusts according to market conditions.

If demand rises, Frax reduces collateral. In case demand falls, it increases collateral to keep its value steady.

This hybrid approach helps Frax stay stable while being more flexible than traditional stablecoins. It is widely used in decentralized finance (DeFi) for trading, lending, and payments.

9. Ampleforth (AMPL) 

Ampleforth (AMPL) is an algorithmic stablecoin that uses a special system called a “rebase” to adjust its supply. Instead of changing the price of the coin, AMPL changes the number of tokens each wallet holds.

If the price of AMPL goes above the target price, the system increases the number of tokens, and if it goes below, it decreases the supply. This helps keep the value of AMPL stable without directly adjusting its price.

This system is different from other stablecoins and works by automatically adjusting its supply based on market conditions.

10. USDD (Decentralized USD)

USDD (Decentralized USD) is a digital currency created in 2022 by Justin Sun, who founded Tron DAO. It aims to keep its value equal to 1 U.S. dollar at all times. Instead of using real money, it relies on digital assets like BTC, TRX, and USDC to maintain its worth.

To stay stable, USDD holds more assets than the amount being used. This extra backing helps reduce risks. However, digital currencies like this often struggle to keep their dollar value, and USDD has seen price changes.

USDD works on BNB Chain, Tron, and Ethereum. It is mostly used in online finance for payments and trading. Its future success depends on how well it can hold its value as markets change.

Conclusion

Stablecoins bring stability to the volatile cryptocurrency market. Fiat-backed stablecoins are tied to traditional currencies, while crypto-collateralized and algorithmic stablecoins use decentralized systems. 

Commodity-backed stablecoins, like those tied to gold, offer a link to real assets. If you’re looking to integrate or implement stablecoins into your projects or banking systems, Webisoft can help. 

With expertise in blockchain technology and the legal aspects of stablecoin development, Webisoft ensures the security and efficiency of your stablecoin project.