What is Stablecoin?
Stablecoins are a type of cryptocurrency that are designed to maintain a stable value relative to another asset, typically a fiat currency such as the U.S. dollar or the euro. Unlike other cryptocurrencies, the value of stablecoins is not subject to the same volatility that can occur in the cryptocurrency markets.
According to Coincodex, the market cap of the Stablecoins is roughly $137 billion, representing 12% of the total cryptocurrencies.
Stablecoins have a number of use cases, including as a means of payment, a store of value, and a way to facilitate cross-border transactions. They are also increasingly being used in DeFi applications, where they can be used as collateral, as a means of exchange, or to provide liquidity to various DeFi protocols.
With the significant attention of stablecoin increasing in recent years, there is more to explore about its projects! We’ve compiled top stablecoin projects worldwide you won’t want to miss in the article.
Top Stablecoin Projects You Should Know
Progmat Coin — Led by MUFG
Status: Launched
The Progmat Coin will consist of multiple coins, each backed by a pool of money ring fenced in a trust. Using the Progmat Coin infrastructure, the transfer of coins means that payments don’t touch the banking system, similar to public blockchain payments.
The project is focused on wholesale stablecoin for institutional use, referred to as real-time gross settlement (RTGS) on Progmat.
Objective:
- To become the stablecoin for Japan to settle NFT and crypto asset transactions
Find more on this project on CFTE’s analysis of blockchain projects.
Euro Stablecoin (EURB) — Led by Bankhaus von der Heydt and Bitbond
Status: Launched
Bitbond, Germany’s leading tokenization and digital asset custody technology provider, and Bankhaus von der Heydt (BVDH), one of Europe’s oldest banks, have joined forces to issue a Euro (EUR) stablecoin (EURB) on the Stellar network. The EURB stablecoin is the first stablecoin issued directly by a banking institution on Stellar and one of the first of its kind in the crypto market.
Objective:
- To explore ways to securitize assets in a more efficient manner
Find more on this project on CFTE’s analysis of blockchain projects.
Lugh Euro Stablecoin — Led by Societe Generale
Status: Launched
Lugh is positioned as the first player in the world to issue stable digital assets pegged to the euro in a trustworthy environment. These digital assets are available to corporate players in the financial and commercial sectors to enable them to create new and innovative use cases for their customers. They are also used by individuals to easily trade crypto-currencies and hedge against volatility.
Objective:
- To make a secure, transparent, trustable and non-volatile stablecoin and is accessible to anyone
Find more on this project on CFTE’s analysis of blockchain projects.
USD Coin (USDC) — Led by Circle and Coinbase
Status: Launched
USDC is a type of stablecoin designed to maintain a stable value relative to the U.S. dollar. It is built on the Ethereum blockchain and is an ERC-20 token. It is also interoperable with other Ethereum-based applications, allowing it to be used in decentralised finance (DeFi) applications and exchanges.
Objective:
- To provide a stable and transparent digital currency that can be used for a variety of purposes, including payments, remittances, and other financial transactions.
Find more on this project on CFTE’s analysis of blockchain projects.
Tether (USDT) — Led by Tether Limited
Status: Launched
Tether was first launched in 2014 and is issued by Tether Limited. It is built on multiple blockchains, including Bitcoin, Ethereum, and Tron, and is available in a variety of different formats.
Objective:
- To provide a less volatile digital currency by pegging its value to the US dollar
- To hold funds within the crypto system while avoiding the price fluctuations that are common with cryptocurrencies
Find more on this project on CFTE’s analysis of blockchain projects.
Binance USD (BUSD) — Led by Binance and Paxos
Status: Launched
BUSD is one of the most popular stablecoins and it is a 1:1 fiat-backed stablecoin issued by Binance, in partnership with Paxos, and approved and regulated by the New York State Department of Financial Services.
Objective:
- To create a cryptocurrency that was trusted by the community and regulators worldwide
- To provide a stable market value but also promotes on-chain assets
Find more on this project on CFTE’s analysis of blockchain projects.
DAI — Led by MakerDAO
Status: Launched
DAI is a type of stablecoin that operates on the Ethereum blockchain launched by MakerDAO in December 2015. It is not backed by a reserve of U.S. dollars or any other asset. Instead, Dai is created through a system of smart contracts and is backed by overcollateralized cryptocurrency assets, primarily Ethereum.
Objective:
- To provide a stable cryptocurrency that can be used for a variety of purposes
Find more on this project on CFTE’s analysis of blockchain projects.
PAX Dollar (USDP) — Led by Paxos
Status: Pilot Launched
Paxos Standard was introduced in September 2018 and it is now referred to as Pax Dollar (USDP). This stablecoin is based on Ethereum blockchain and supported by US dollars held in accounts maintained by the company at depository institutions in the United States and is collateralized by fiat currency.
Objective:
- To facilitate the speedy and efficient settlement of the cash component of digital asset transactions
Find more on this project on CFTE’s analysis of blockchain projects.
Gemini dollar (GUSD) — Led by Gemini
Status: Launched
GUSD is a U.S. dollar-backed stablecoin and based on Ethereum and ready for use in smart contract development. GUSD is a digital representation of cash that can be used to interact with the crypto economy. It has been fully regulated by the New York State Department of Financial Services since 2018.
Objective:
- To combine creditworthiness and price stability with the speed and efficiency of cryptocurrency
Find more on this project on CFTE’s analysis of blockchain projects.
Future outlook of Stablecoin development
Stablecoins are increasingly being used for a variety of financial transactions and integrated into mainstream financial systems as they act as a stable medium of exchange for payments. With ongoing innovation and improvements in technology, stablecoins are poised to play an increasingly important role in the global financial system, providing stability and flexibility for users around the world.
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