Overview of popular stablecoins: USDT, USDC, BUSD

05.12.2023

Stablecoins are cryptocurrencies pegged to stable assets, most commonly the US dollar. They combine the convenience of digital payments with the stability of traditional currencies. Below is an overview of the three most popular ones: USDT, USDC, and BUSD. USDT (Tether)The most widely used stablecoin in the worldIssued by Tether LimitedPegged to the US dollar at a 1:1 ratioRuns on Ethereum, TRON, Binance Smart Chain, Solana, and others Pros: high liquidity, widely supported across exchanges Cons: concerns about transparency and reserves audit USDC (USD Coin)Issued by Circle and Coinbase, considered more transparentAlso pegged to the US dollar at 1:1Operates on Ethereum, Solana, Polygon, Arbitrum, and more Pros: regular audits, strong reputation Cons: less liquidity than USDT, but growing steadily BUSD (Binance USD)The official stablecoin from BinanceCreated in partnership with Paxos (until 2023)Runs on Binance Smart Chain and Ethereum Pros: deeply integrated into the Binance ecosystem Cons: Paxos stopped issuing new BUSD due to regulatory pressure Which Stablecoin to Choose?For trading and quick exchanges — USDT is the most commonly usedFor storing value and transparency — USDC is a solid choiceFor use within Binance — BUSD is convenient while still supported