Here are the main types of stablecoins available in the Binance market, categorized by their underlying mechanisms:

🔹 1. Fiat-Backed Stablecoins (Centralized)

These are backed 1:1 by fiat currencies like USD, held in reserve by a central entity.

Examples on Binance:

USDT (Tether) – Backed by USD, issued by Tether Ltd.

USDC (USD Coin) – Backed by USD, issued by Circle/Coinbase.

FDUSD (First Digital USD) – Regulated USD-backed stablecoin from First Digital Labs.

TUSD (TrueUSD) – Fully backed by USD and regularly attested.

🔹 2. Crypto-Backed Stablecoins (Decentralized)

Collateralized by other cryptocurrencies and often over-collateralized due to volatility.

Examples on Binance:

DAI (MakerDAO) – Backed by ETH and other cryptos, maintained by smart contracts.

sUSD (Synthetix USD) – Backed by SNX and managed via Synthetix protocol.

🔹 3. Algorithmic Stablecoins

Maintains its peg via algorithms and incentives instead of reserves.

Examples on Binance (riskier):

USTC (TerraClassicUSD) – Previously algorithmic; known for the 2022 crash.

FRAX (Frax Protocol) – Hybrid: partially backed by collateral and algorithmic.

🔹 4. Commodity-Backed Stablecoins

Backed by real-world assets like gold.

Examples on Binance:

XAUT (Tether Gold) – Backed by physical gold.

PAXG (Paxos Gold) – Each token backed by 1 fine troy ounce of gold. $USDC