Stablecoins have revolutionized the financial landscape, providing a stable alternative to volatile cryptocurrencies while enabling users to enjoy the benefits of blockchain technology. In 2025, the diversity of stablecoins on the market is more pronounced than ever, each offering unique features and advantages.

Among them, Tether (USDT) stands out for its high liquidity, although concerns about the security of its reserves remain. On the other hand, USD Coin (USDC) is regarded as one of the safest stablecoins, backed by verified reserves and transparency that inspires user confidence. USDA from Angle shines with its innovative mechanisms, offering robustness and attractive yield through its redistribution model, making it particularly appealing to investors seeking returns. In Europe, EURA from Angle emerges as the most traded Euro stablecoin, providing a stable solution for transactions in fiat currency. Additionally, projects like Dai (DAI) continue to attract users with their decentralized nature, while PayPal USD (PYUSD) brings the reputation and trust of one of the world’s largest payment platforms into the stablecoin arena. Other notable stablecoins such as TrueUSD (TUSD), Ethena USDe (USDe), Frax (FRAX), and Pax Dollar (USDP) contribute to this landscape by offering various models that cater to different user needs, from decentralization to flexibility.

This varied ecosystem illustrates that, in a rapidly evolving market, understanding the best available options is essential for effectively navigating the world of stablecoins in 2025. With each stablecoin presenting distinct benefits, users can make informed choices that align with their financial goals.

If you're feeling a little lost, be sure to read our comprehensive article to gain an understanding of what stablecoins are, how they function, and the various types available. This resource will provide you with valuable insights into the mechanics of stablecoins and their significance in the cryptocurrency market.

List of Top Stablecoins to Know

Tether (USDT)

Tether (USDT) Review

Tether (USDT) is one of the most popular and widely used stablecoins in the crypto market, known for its high liquidity and strong presence across multiple exchanges. Pegged to the US Dollar, USDT offers a stable value, making it a preferred choice for traders seeking to avoid the price volatility of other cryptocurrencies. However, concerns have been raised about the transparency of its reserves, leading to ongoing debates about its long-term security. Despite this, USDT remains a dominant force in the world of digital assets, providing a reliable way to move funds on the blockchain and participate in decentralized finance (DeFi) ecosystems.

Tether (USDT) Pros and Cons

Tether (USDT) Pros

USDT token offers unmatched liquidity and is the most widely accepted stablecoin on crypto exchanges such as Coinbase, Binance, making it easy to trade or transfer across different platforms. It provides a reliable hedge against the price volatility of other cryptocurrencies, allowing traders to move in and out of positions quickly. Additionally, its wide integration in decentralized finance (DeFi) applications and its role in cross-border blockchain transactions make it a versatile tool for users globally.

Tether (USDT) Cons

Tether has faced criticism over the transparency of its reserves, with ongoing concerns about whether it is fully backed by USD. This lack of full audit clarity has raised doubts about its long-term stability and security. Regulatory scrutiny has also increased, which could impact its future availability or the trust users place in it. These factors pose potential risks, especially for large-scale holders or institutions.

USD Coin (USDC)

USD Coin (USDC) Review

USD Coin (USDC) is a widely trusted and popular stablecoin pegged to the US Dollar, developed by Circle in collaboration with Coinbase. Launched in 2018, USDC has become a favorite in the crypto community due to its emphasis on transparency and regulatory compliance. Each USDC token is fully backed by USD reserves, with regular audits providing users confidence in its stability. It is extensively used in decentralized finance (DeFi) platforms, exchanges, and payments, offering a secure and stable way to store and transfer value within the blockchain ecosystem.

USD Coin (USDC) Pros and Cons

USD Coin (USDC) Pros

The USDC token is known for its high level of transparency, with regular third-party audits ensuring that every token is fully backed by USD reserves. This strong focus on regulatory compliance and transparency has earned USDC the trust of both individual users and institutions. It is widely available across most popular exchanges like Binance, Coinbase, and DeFi platforms, offering a reliable and secure means for trading, transferring, and storing value.

USD Coin (USDC) Cons

Despite its strengths, USDC's centralized nature can be seen as a drawback by some in the crypto community, particularly those who prioritize decentralization. Circle, the issuer, retains the ability to freeze or blacklist wallets holding USDC, which raises concerns about censorship and control. Additionally, its reliance on the traditional banking system means it could be affected by regulatory changes or disruptions in fiat currency reserves.

Dai (DAI)

DAI (DAI) Review

Dai (DAI) is a decentralized stablecoin pegged to the US Dollar and issued through the MakerDAO protocol. Unlike many stablecoins backed by traditional fiat currency reserves, DAI is created by users who lock up crypto assets on the blockchain, such as Ethereum (ETH), as collateral in a system of smart contracts. This decentralized approach allows the DAI token to maintain its peg without relying on a centralized authority. Since its launch in 2017, DAI has become a fundamental part of the decentralized finance (DeFi) ecosystem, offering stability and flexibility to users seeking a stablecoin with a focus on decentralization.

DAI (DAI) Pros and Cons

DAI (DAI) Pros

The key advantage of the DAI token is its decentralized nature, which ensures that users retain control over the system without the need for a central issuer. It’s highly transparent, with all collateral and transactions managed by smart contracts on the Ethereum blockchain. DAI is widely adopted in DeFi, making it versatile for activities like lending, borrowing, and yield farming. Its decentralized governance model, through MakerDAO, empowers the community to make decisions about its future.

DAI (DAI) Cons

One of the challenges with DAI is its dependence on volatile collateral, such as Ethereum, which can cause instability during sharp market downturns. In times of extreme price drops, the system faces liquidation risks, potentially affecting the peg. Additionally, as more centralized assets like USDC are used as collateral, there are concerns that DAI could lose some of its decentralized character. Managing and interacting with DAI on the blockchain can also be more complex compared to fully fiat-backed stablecoins.

PayPal USD (PYUSD)

PayPay USD (PYUSD) Review

PayPal USD (PYUSD) is a stablecoin issued by PayPal and backed 1:1 by US Dollar reserves. Launched in 2023, PYUSD aims to integrate the stability of a Dollar-backed asset with the convenience of digital transactions, particularly within PayPal’s extensive global network. Designed for seamless payments, transfers, and crypto transactions, PYUSD brings the credibility and trust of PayPal into the stablecoin space. It offers a bridge between traditional finance and decentralized finance (DeFi), allowing users to interact with both systems using a familiar and widely accepted platform.

PayPal USD (PYUSD) Pros and Cons

PayPal USD (PYUSD) Pros

PYUSD benefits from the strong reputation and vast user base of PayPal, making it accessible to millions of people worldwide. Its backing by US Dollar reserves, with full transparency and regulatory oversight, provides a high level of security and trust. PYUSD is designed to be easily integrated into PayPal’s ecosystem, enabling simple and fast payments, transfers, and potential usage within DeFi. Its mainstream accessibility could help onboard more users into the crypto space.

PayPal USD (PYUSD) Cons

PYUSD’s primary drawback is its centralized nature, as it is controlled and issued by PayPal. This centralization gives PayPal the ability to freeze or restrict accounts and funds, which may raise concerns about censorship and lack of control for users. Additionally, as a newer stablecoin, PYUSD may face competition from more established options like USDC and USDT, and its adoption in the broader crypto and DeFi markets is still growing. Its reliance on traditional financial institutions also ties it to potential regulatory risks.

TrueUSD (TUSD)

TrueUSD (TUSD) Review

TrueUSD (TUSD) is a stablecoin pegged to the US Dollar and launched in 2018 by TrustToken. As one of the first regulated stablecoins, TUSD is designed to provide a reliable and transparent digital asset that facilitates stable blockchain transactions in the cryptocurrency ecosystem. Each TUSD token is fully backed by USD held in escrow accounts, with regular third-party audits ensuring the integrity of its reserves. TUSD aims to combine the benefits of blockchain technology with the stability of fiat currencies, making it an attractive option for users seeking a dependable stablecoin for trading and payments.

TrueUSD (TUSD) Pros and Cons

TrueUSD (TUSD) Pros

One of the main advantages of TUSD is its high level of transparency, supported by regular audits that verify its USD reserves. This ensures that each TUSD token is fully backed, providing users with confidence in its stability. TUSD is widely accepted across numerous popular exchanges like Binance and platforms, making it easy to trade and transfer. Additionally, its regulatory compliance helps to build trust among users, positioning TUSD as a reliable option for those looking to engage in cryptocurrency transactions without the price volatility of other digital assets.

TrueUSD (TUSD) Cons

Despite its strengths, TUSD’s centralized nature may be a concern for users who prioritize decentralization in their crypto dealings. As a regulated stablecoin, TrueUSD relies on traditional banking systems, which can lead to potential vulnerabilities related to regulatory changes or banking issues. Furthermore, while TUSD is gaining traction, it still faces stiff competition from more established stablecoins like USDT and USDC, which may limit its adoption and usage in the broader cryptocurrency market.

Ethena USDe (USDe)

Ethena USDe (USDe) Review

Ethena USDe is a stablecoin protocol that leverages a delta-neutral strategy to maintain its peg to the US Dollar, making it an appealing option for DeFi and Web3 applications. The protocol employs a diversified basket of cryptocurrencies as collateral, reducing the risks associated with any single asset. This diversified approach, combined with the use of positions in derivatives, helps mitigate market price volatility and provides a stable medium of exchange. Additionally, Ethena's proactive measures, such as maintaining a reserve fund to counteract potential negative funding rates, enhance user confidence and security within the protocol.

Ethena USDe (USDe) Pros and Cons

Ethena USDe (USDe) Pros

Ethena USDe (USDe) stands out in the stablecoin market due to its decentralized custody system, OES, which eliminates single points of failure and enhances transparency compared to centralized stablecoins like USDT and USDC. This decentralized blockchain structure ensures censorship resistance, as USDe does not rely on traditional banking systems for USD management; instead, it employs on-chain, auditable custody solutions available 24/7, improving asset security and accessibility. Additionally, USDe’s innovative peg-maintenance mechanism allows it to avoid the heavy overcollateralization typical of algorithmic stablecoins like Dai, which often require over 150% collateral. This streamlined approach promotes scalability and efficiency, making USDe a practical choice for blockchain transactions and value storage in the DeFi ecosystem.

Ethena USDe (USDe) Cons

Despite its innovative design, USDe is not without risks. The reliance on derivative positions exposes the protocol to funding rate risks, which can affect profitability if negative rates persist over time. Additionally, the collateral used—stETH—can experience value divergence from ETH, leading to potential liquidation risks if the spread widens too much. This could compromise the stability of USDe. Furthermore, the protocol’s dependence on external custodians, like Fireblocks, introduces counterparty risks, where any operational failures could impact its viability.

Frax (FRAX)

Frax (FRAX) Review

Frax (FRAX) is a decentralized stablecoin pegged to the U.S. Dollar, designed to provide users with a reliable and stable digital asset within the cryptocurrency ecosystem. Launched as part of the Frax Finance platform, FRAX combines collateralization and algorithmic mechanisms to maintain its value. The unique hybrid model adjusts the proportion of collateral backing the stablecoin based on market demand, ensuring both price stability and scalability. Unlike traditional stablecoins that rely solely on fiat currency reserves, FRAX aims to create a more flexible and efficient approach to stability, appealing to users in decentralized finance (DeFi) and beyond.

Frax (FRAX) Pros and Cons

Frax (FRAX) Pros

One of the standout features of FRAX is its decentralized blockchain governance model, which allows the community of FRAX holders to participate in decision-making processes, promoting transparency and trust. This community-driven approach enhances the resilience of the protocol against manipulation. Additionally, FRAX offers various DeFi services, including lending and liquidity provision, and incentivizes user participation through a staking system where users can lock their tokens to earn rewards. This fosters engagement and contributes to the network's growth while providing users with opportunities to earn passive income.

Frax (FRAX) Cons

Despite its innovative approach, Frax is not without challenges. The reliance on U.S. Dollar reserves held in regulated bank accounts introduces a degree of centralization and dependence on third-party institutions, which can compromise the protocol’s security and trustworthiness. Additionally, unlike many other stablecoins, FRAX is not over-collateralized, making it more susceptible to market fluctuations and increasing the risk of losing its peg to the Dollar. Furthermore, as a stablecoin designed to maintain its Dollar peg, FRAX may face regulatory scrutiny that could result in compliance costs and restrictions. The hybrid model, which combines collateralization with algorithmic elements, may also be complex for novice users to understand, potentially hindering wider adoption in the cryptocurrency space.

Pax Dollar (USDP)

Pax Dollar (USDP) Review

Pax Dollar (USDP) is a fiat-collateralized stablecoin pegged to the U.S. Dollar and issued by Paxos Trust Company, a regulated financial institution. It is backed 1:1 by U.S. Dollars held in reserve, ensuring both stability and transparency for users. Operating on the Ethereum blockchain, USDP enables secure and instantaneous transactions across the globe, making it a versatile choice for various financial activities, including trading, purchases, and savings. Users can redeem their USDP token for U.S. Dollars at any time, further reinforcing the stability and reliability of this digital asset. As the demand for stablecoins continues to rise, USDP has emerged as a trusted option for those looking to engage in the cryptocurrency space while minimizing exposure to price volatility.

Pax Dollar (USDP) Pros and Cons

Pax Dollar (USDP) Pros

One of the primary advantages of Pax Dollar is its stability, as it is pegged to the U.S. Dollar. This characteristic makes USDP suitable for blockchain transactions without the concern of price fluctuations that often accompany other cryptocurrencies. Additionally, being fully regulated and compliant with U.S. financial laws instills a sense of security and trust among users, who can confidently engage in transactions. Pax Dollar also boasts transparency, with its reserve holdings audited monthly by reputable auditing firms, ensuring that users can trust that each USDP is backed by an actual Dollar.

Pax Dollar (USDP) Cons

Despite its strengths, Pax Dollar has some limitations. As a stablecoin, it does not offer the potential for capital appreciation that other cryptocurrencies might provide; its value remains stable, making it less appealing for investors seeking growth. Moreover, the centralized nature of Pax Dollar, along with its regulatory oversight, may deter users who prefer decentralized cryptocurrencies. This centralization can create a perceived lack of autonomy, as users must rely on a third party to manage their assets. Lastly, while USDP is widely accepted, its utility may still be somewhat limited compared to more versatile cryptocurrencies that can be used for a broader range of applications within the DeFi space.

Best Yield-Bearing Stablecoins

What are Yield-Bearing Stablecoins?

Yield-bearing stablecoins are a type of digital asset designed to maintain a stable value while generating interest or returns for their holders. Unlike traditional stablecoins, which merely serve as a medium of exchange pegged to fiat currencies, yield-bearing stablecoins utilize various DeFi (decentralized finance) protocols and mechanisms to generate passive income. This can be achieved through lending, liquidity provision, or yield farming strategies, allowing users to earn interest on their holdings while still enjoying the benefits of price stability. Examples of yield-bearing stablecoins include platforms like MakerDAO or Angle Protocol, where users can deposit their stablecoins to earn yields, making these assets appealing for those seeking both stability and income generation in the rapidly evolving blockchain and cryptocurrency ecosystem.

List of Yield-Bearing Stablecoins

stUSD: Yield-Bearing Dollar Stablecoins

stUSD (staked USDA) represents a yield-bearing variant of the USDA Dollar stablecoin from Angle Protocol. With stUSD, users benefit from a Dollar stablecoin along with a native Dollar yield. The yield provided to stUSD holders is derived from the returns generated by the underlying assets backing the USDA, which include real-world assets (RWAs) like Treasury bills and yield-bearing DeFi assets. Additionally, part of the yield comes from interest payments made by USDA borrowers. By merging yields from both decentralized finance (DeFi) and traditional finance (TradFi) sources, stUSD delivers optimal low-risk returns, ensuring that stUSD holders receive the highest secure yield without needing to take any action.

stEUR: Yield-Bearing Euro Stablecoins

stEUR (staked EURA) is a yield-bearing version of the EURA stablecoin developed by Angle Protocol. With stEUR, users receive a Euro stablecoin along with an inherent Euro yield. The yield distributed to stEUR holders is derived from the returns generated by the assets backing EURA, including real-world assets (RWAs) such as Treasury bills and yield-producing DeFi assets. Additionally, part of the yield is sourced from the interest paid by EURA borrowers. By integrating yields from both decentralized finance (DeFi) and traditional finance (TradFi) sources, stEUR provides optimal low-risk returns, ensuring that stEUR holders can consistently enjoy the highest secure yield effortlessly without requiring any action on their part.

Overview of the Best Stablecoins

Best Stablecoins Recap Table

Stablecoins guide for Beginners

What is a stablecoin?

Stablecoins are a category of cryptocurrency created to maintain a stable value by connecting their worth to another asset, such as a fiat currency (like the Dollar or Euro) or commodities such as gold. By tying their value to more stable assets, stablecoins aim to lessen the price volatility that is often observed in the cryptocurrency market.

Why are stablecoins important?

The stability of stablecoins makes them useful for everyday transactions and encourages wider use. For traders, converting cryptocurrencies to stablecoins can protect profits and safeguard against market drops. They also streamline global payments, allowing fast and low-cost blockchain transactions without the price fluctuations of other cryptocurrencies. Overall, stablecoins enhance security and efficiency in trading and international money transfers.

How do stablecoins work?

A stablecoin is typically supported by a reserve of assets that acts as collateral to uphold its value. For example, the issuer may keep $1 million in a bank to back one million units of the stablecoin, guaranteeing that holders can exchange their stablecoins for an equivalent amount of the reserve asset. This approach ties the stablecoin's value to tangible assets, such as fiat currency. Certain stablecoins, like Angle's USDA and EURA, are decentralized and backed by cryptocurrencies instead of fiat currencies, reflecting the decentralized principles of blockchain technology.

What are the different types of stablecoins?

Fiat-backed Stablecoins

Fiat-collateralized stablecoins are secured by traditional currencies like the U.S. Dollar or Euro, offering stability through reserves held by custodians that are subject to audits for transparency. Notable examples include Tether (USDT) and USDC. However, these stablecoins rely on centralized organizations to manage their reserves, which contrasts with the decentralized nature of cryptocurrencies. Additionally, while these stablecoins earn revenue from their reserves, users do not receive a share of the profits, and there are ongoing concerns regarding the transparency of audits and the sufficiency of reserve backing.

Commodity-backed Stablecoins

Commodity-backed stablecoins are linked to the value of resources such as gold, silver, or oil, with reserves typically held by third-party custodians or invested in related financial instruments like ETFs. They provide the benefit of straightforward access to commodity investments via tokens. However, similar to fiat-backed stablecoins, they rely on centralized organizations to manage their reserves, which is at odds with the decentralized ethos of cryptocurrency, raising potential concerns regarding transparency and audits.

Crypto-backed Stablecoins

Crypto-backed stablecoins are supported by cryptocurrencies. They are often over-collateralized for enhanced security and transparency, enabling users to verify the reserves independently without depending on centralized authorities. These stablecoins are decentralized and accessible to everyone, adhering to the core principles of cryptocurrency, and many distribute revenue from reserves to users, providing a source of passive income. Examples include DAI (now USDS) from Sky and USDA from Angle.

Algorithmic Stablecoins

Algorithmic stablecoins utilize software algorithms and smart contracts to modify their supply in response to demand, striving to maintain a stable price without relying on actual reserves. Their main advantage lies in their decentralized structure. However, they can be risky due to the complexity of their mechanisms, which may struggle to keep the price peg intact. A notable example is TerraUSD (UST), which lost its peg to the U.S. Dollar on May 11, 2022, following a collapse in the value of the Luna token, resulting in UST dropping by more than 60%.

FAQs about Best Stablecoins

Which are the top stablecoins by market cap?

The top stablecoins by market cap are currently Tether (USDT), USDC (USDC), DAI (DAI), and Ethena USDe (USDE).

Can you make money on stablecoins?

While they are designed to maintain a stable value, traders can make money on stablecoins by taking advantage of price fluctuations against volatile assets. Additionally, some stablecoins offer yield-generating opportunities through lending or staking, allowing holders to earn interest on their holdings. This makes them a viable option for those looking to generate income while maintaining a relatively stable investment.

What are the best stablecoins?

The market showcases a diverse array of stablecoins, each with unique features, such as Tether (USDT) for high liquidity and USD Coin (USDC) for its safety and transparency. Other notable options like USDA from Angle and Ethena USDe (USDe), which offers attractive yields, and the decentralized Dai (DAI), along with PayPal USD (PYUSD), highlight the variety available, enabling users to make informed choices that align with their financial goals.

Where to buy stablecoins?

You can acquire stablecoins via cryptocurrency exchanges such as Coinbase, Binance, or Kraken by setting up an account, depositing funds, and trading for stablecoins like USDT or USDC. Furthermore, you can buy stablecoins by swapping other cryptocurrencies on decentralized exchanges like Uniswap or 1inch. Some platforms also offer the option to make direct purchases using credit or debit cards.