Here's a brief analysis of major stablecoins by risk level, transparency, and resilience in the current regulatory uncertainty in the US:
1. USDC (USD Coin) — Issuer: Circle
Pros:
One of the most regulated and transparent stablecoins.
Regular audits, reserves in US banks and T-bills.
Actively collaborates with regulators.
Cons:
Heavily depends on US policy.
Lost market share after the banking crisis in 2023 (SVB collapse).
Risk: Low
Outlook: Well-positioned in case of regulatory acceptance.
2. USDT (Tether) — Issuer: Tether Limited
Pros:
Most used and liquid stablecoin.
Dominates on CEX and in developing countries.
Cons:
Limited transparency (until recently).
Registered in offshore zones, weaker regulation.
Under close scrutiny from US and EU regulators.
Risk: Medium
Outlook: Stable, but may face regulatory pressure.
3. DAI — Issuer: MakerDAO (decentralized)
Pros:
Decentralized and algorithmic.
Not controlled by a centralized company.
Cons:
Depends on collateral in USDC and ETH (about 50% of reserves — centralized assets).
Difficult to regulate — could be under pressure in the US.
Risk: Medium-High
Outlook: Innovative, but vulnerable to regulatory pressure on DeFi.
4. PYUSD (PayPal USD) — Issuer: Paxos
Pros:
Backed by a large fintech company.
Regulated, reliable, well integrated into Web2.
Cons:
Low liquidity and weak distribution.
Under the control of centralized platforms (PayPal).
Risk: Low
Outlook: Promising as a corporate and B2C stablecoin.
5. FRAX — Issuer: Frax Finance
Pros:
Partially algorithmic, interesting hybrid approach.
Cons:
Risks of decentralization and insufficient backing.
Previously partially relied on USDC.
Risk: Medium
Outlook: May grow if DeFi succeeds, but currently niche.
