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Are you looking to find out which stablecoin to choose to secure your funds, limit volatility or optimize your strategies in decentralized finance ? Faced with the diversity of stablecoin s on the market, we regulate this article to understand the differences between each stablecoin , their advantages, their risks and the reliability of the organizations that emit them. This guide highlights the specifics of the best stablecoin s in 2025, to help you choose the most reliable stablecoin according to your needs.
Table of contents
What is a stablecoin ?
Stablecoin is a cryptocurrency stablecoin to maintain stable value, generally backed by a fiduciary currency like the US dollar. Unlike cryptocurrencies , often volatile , stablecoin s allow you to take advantage of the speed of transactions while limiting market volatility . Stablecoin stablecoin therefore allow investors and users , store or exchange funds without undergoing extreme price variations typical of other digital assets
The different types of stablecoins
- Centralized Stablecoin : backed by reserves in fiduciary currency (eg usdt , usdc , fdusd ).
- Decentralized Stablecoin : guaranteed by crypto-actives placed in collateral in intelligent contracts (ex: DAI ).
- Stablecoin s algorithmic : maintain their parity thanks to algorithms adjusting supply and demand (ex: Frax ).
Why use a stablecoin ? The advantages of stablecoins
- Reduction of volatility : stablecoin s are particularly used to protect themselves against volatility from the crypto market.
- Ease of transactions : they offer liquidity and are accepted on more than 100 exchange platforms.
- Access to decentralized finance : stablecoin S DEFI , staking services .
- Tax strategy : Staying in stablecoin can help avoid conversions to fiduciary currencies and therefore to a taxation in certain countries, especially in France.
Centralized Stablecoin: USDT, USDC, FDUSD, Busd
USDT (Tether): the most used stablecoin but controversial
USDT (TETHER) is the most capitalized stablecoin and the most used by investors and users in the Crypto markets in May 2025. It represents more than 60 % of the stablecoin S market in 2025. This centralized stablecoin is backed by reserves , but the quality and transparency of these reserves have long been criticized.
- Emitting organization : Tether Limited (Hong Kong)
- Type of stablecoin : Stablecoin backed by reservations in fiduciary currency and other assets (treasury vouchers, bonds, liquidity, etc.).
- Transparency: TETHER has long been criticized for its lack of transparency, in particular due to accusations that the USDT was not entirely backed by dollar reserves as promised. These suspicions led to investigations and regulations with the New York General Prosecutor in 2021, where Tether admitted that he has always maintained complete liquidity coverage. Since then, the company has published quarterly certificate reports carried out by third -party firms, detailing the composition of its reservations (which now include treasury, and other assets). However, Tether has not yet provided a real complete independent audit , which continues to fuel the debate on the reliability and exact liquidity of its reserves.
- Reservations : doubts persist on the quality of the active workers held. In 2021, Tether paid a fine of $ 41 million at the CFTC for exaggerating the share of his cash reserves.
- Liquidity : USDT is stablecoin with the highest liquidity
USDT remains the most used stablecoin stablecoin and transparency.
USDC (USD Coin): the reference in terms of transparency
USDC (USD Coin) is the second most capitalized stablecoin partnership with Coinbase , two regulated American companies. USDC is backed by reserves in dollars held in American and regularly audited banking institutions.
- Emitting organization : Circle and Coinbase (United States)
- Type of stablecoin : Stablecoin backed by reserves in fiduciary cash or treasury bills.
- Transparency : monthly audit reports published by Grant Thornton.
- Rétities : USDC briefly lost its parity during the bankruptcy of the Silicon Valley Bank in 2023, but the situation was quickly restored.
- Liquidity : USDC benefits from strong adoption with institutional investors and regulated platforms.
USDC is considered the most stablecoin among the stablecoin centralized in 2025, thanks to its transparency and the regulation of its transmitters.
Circle updates its reserve proofs here .
FDUSD : Binance stablecoin
FDUSD (First Digital USD) is a centralized stablecoin supported by the Binance platform . It is backed by reserves in dollars held in Asian banks. FDUSD wins quickly by adoption, especially on Binance , but remains less used than usdt or usdc .
- Emitting organization : First Digital Trust (Hong Kong)
- Type of stablecoin : Stablecoin backed by bank reserves.
- Transparency : monthly audit reports available, but regulation remains less strict than in the United States.
- Liquidity : Strong on the Binance , limited elsewhere.
FDUSD is a relevant choice for Binanceusers, but it remains to be monitored to judge its long -term reliability.
Busd: the end of a major stablecoin
Busd , formerly issued by Binance and Paxos, saw its production stopped in 2024 following American regulatory pressures. Users are invited to migrate to other stablecoin S like FDUSD or USDC .
Decentralized Stablecoin: dai, frax and alternatives
DAI: Decentralized reference stablecoin
Dai is the best known decentralized stablecoin It is backed by cryptocurrency (mainly ETH and USDC ) deposited in collateral in smart contract via Makerdao. DAI is not issued by a central entity, which limits the risks of censorship or freezing of funds.
- Emitting organization : Makerdao, a decentralized autonomous organization ( DAO )
- Type of stablecoin : Stablecoin collateralized by other digital assets.
- Transparency : all reservations can be viewed in real time on the blockchain.
- Reluctance : DAI is exposed to the volatility of collateralized assets usdc for its stability.
- Liquidity : Strong on DEFI platforms, more limited on CEX.
Dai is the decentralized stablecoin most used by the followers of decentralized finance , but it remains sensitive to the volatility of the crypto market.
Frax: a hybrid algorithmic stablecoin
Frax is a stablecoin , combining partial collateralization by assets and algorithmic mechanism. Its objective is to maintain parity with the dollar while limiting dependence on fiduciary currencies .
- Emitting organization : Frax Finance (Dao decentralized)
- Type of stablecoin : decentralized algorithmic and partially collateralized Stablecoin
- Transparency : the reservations and the operation of the algorithm are public.
- Reluctance : the stablecoin s algorithmic are fragile during high volatility, as shown by the collapse of Terrausd (UST) in 2022.
- Liquidity : Good on the DEFI platforms, lower on the CEX.
Frax innovates in the decentralized stablecoin , but the risk of depending remains present, especially during market crises.
The other decentralized stablecoinalgorithmic
After Terrausd's failure, confidence in the decentralized algorithmic stablecoin was seriously shaken. These stablecoin s can lose their parity suddenly if their algorithm fails to balance supply and demand during market shocks.
Additional compatibility of theUSDC
One of the great advantages of theUSDC in 2025 is its direct compatibility with decentralized trading platforms. These platforms, such as dYdX and Drift, allow access to derivative products (future, perpetual) or trading in cash without going through a centralized intermediary, which allows in particular to bypass the prohibition of future crypto in France.
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On dYdX, which now works on its own blockchain (built with Cosmos), theUSDC is used as a single collateral: it is used to open, close and adjust all positions, with more than 200 available pairs, maximum costs of 0.05 % at the smallest volume, and recognized liquidity as one of the best in the sector.
Drift , on Solana , also offers trading of perpetual contracts, loan/borrowing and high yield vaults, still in USDC , with costs from 0.01 % to 0.1 % depending on the volume and more than 50 active pairs.
Using theUSDC on these platforms offers several advantages: regulatory conformity, speed of transactions, stability of collateral, and access to global decentralized finance without geographic restriction. Users can thus trader, lend or borrow independently, take advantage of yields on their stablecoins and remain exposed to a stable asset, while avoiding the volatility of other cryptocurrencies. This positioning makes theUSDC the reference stablecoin for the DEFI and decentralized trading in 2025.
How do stablecoinmaintain their stability?
The key role of arbitration and confidence in the reserves
The stability of the stablecoinattached to a fiduciary currency as the dollar is based on an invisible but vital mechanism: arbitration. This process, carried out by specialized actors, consists in taking advantage of price differences between different platforms to maintain parity at $ 1. Concretely, if the price of a stablecoin emitted by Tether or Circle falls at $ 0.98 on an exchange, the arbitrans buy these tokens at low prices, then exchange them directly from the transmitter for $ 1, pocket the difference ($ 0.02 per unit) and thus go up the course.
This system only works if the arbitrages have confidence in the reserves of the issuing organization. For example, institutional investors and marketers like Jump Trading or Alameda Research will only participate in this arbitration if they are certain that Tether Limited (for USDT) or Circle (for USDC) will honor their buyout commitments to 1: 1. If this confidence is growing - as during theUSDC crisis in March 2023 linked to the Silicon Valley Bank - the arbitrans desert the market, and the stablecoin can lose its parity.
The largest stablecoins like USDT and USDC depend mainly on three types of actors for arbitration:
Professional marketmakers (Citadel Securities, Wintermute) which have direct partnerships with issuers to create/buy stablecoins large volumes.
The centralized exchanges (Binance, Coinbase) which automatically adjust their prices according to the redemption flows.
Specialized Crypto Funds (Amber Group, Genesis Trading) which exploit ineffectures between spot transactions and derivative markets.
This mechanism explains why the most capitalized stablecoinare generally close to $ 1 despite the turbulence of cryptocurrencies. But it also shows their vulnerability: if the active in reserve are deemed risky (such as commercial loans held by Tether), even the most aggressive arbitrages can cease their operations, resulting in a lasting stall - as observed with the UST of Terra in 2022.
Which one to choose in this context? stablecoins with 100 % liquid reserves (USDC) and regulated transmitters are better with confidence attacks than those based on opaque or illiquid assets.
Stablecoinhas collated by digital assets (decentralizedstablecoin)
The decentralized stablecoin as DAI are guaranteed by assets (for example, each DAI is guaranteed by $ 1.5 ETH or USDC USDC . This model reduces the risk of defect, but exposes to the volatility of cryptocurrency .
- The system is transparent and automated via smart contract.
- In the event of a sudden fall in the price of collateral, the stablecoin can be under collateral and lose its value.
Stablecoins algorithmic
A stablecoin algorithmic adjusts its supply according to demand thanks to a computer code. This model aims to be completely decentralized and independent of fiduciary currencies , but it is more risky. The example of the UST in 2022 has shown that these stablecoin s can collapse quickly in the event of a crisis of confidence.
What are the disadvantages of stablecoins?
- Risk of depending if the reserves or algorithm are no longer enough to guarantee parity.
- Regulatory risk, especially for centralized stablecoin subject to the legislation of countries where they are issued.
- Risk of censorship or freezing of funds for centralized stablecoin .
- Exposure to the volatility of other assets for decentralized stablecoin .
Which stablecoin to choose in 2025?
What is the best stablecoin ? The answer depends on your priorities:
- USDC : probably the most reliable stablecoin for investors looking for transparency on reserves and a strong adoption in progress.
- USDT : stablecoin with the highest liquidity
- DAI : Decentralized stablecoin for those who want to avoid the risks of censorship and frost frost.
- FDUSD : Relevant for users of the Binance , but also in the adoption phase.
- Frax : For innovation enthusiasts, but beware of algorithmic risk, less and less available following MiCa .
The best stablecoin s are therefore those that correspond to your investor profile, your appetite to risk and your needs in liquidity or decentralized finance .
How to store your stablecoinsafe?
To store your stablecoinS safely, it is recommended to use a physical wallet (cold wallet) like Ledger or Trezor.
Ledger is distinguished by its high level of security on all models thanks to a secure chip, similar to those used in bank cards, and its Ledger LIVE application which makes it easy to manage more than 15,000 cryptocurrencies, to do staking, to manage NFT and connect to decentralized Xapplications. Ledger is therefore ideal for users looking for advanced management and compatibility with a wide range of tokens, including the stablecoins: Ledger Live supports theUSDT,USDC, DAI, FDUSD, Tusd, Frax as well as most stablecoinSRC-20 and BEP-20.
Trezor, for its part, focuses on transparency with open-source firmware and offers a very easy to use interface. The models offer advanced security features such as Shamir backup and support more than 8,000 cryptocurrencies, most of which are major stablecoin: USDT, USDC, DAI, TUSD, FDUSD. Trezor is often privileged by those who want a more transparent approach.
For more details, we invite you to read our articles to find out which Ledger to choose according to your needs or compare the Ledger and Trezor .
Stablecoins and future: CBDC, regulation and trends 2025
In 2025, the regulation of stablecoin progressed rapidly. Central banks work on their own digital currencies (CBDC), which could compete with stablecoin s for daily uses. The stablecoin s are therefore brought to evolve, both technologically and regulatory, to remain assets adapted to the needs of users .
Impact of MiCa legislation on stablecoins in France and Europe
MiCa legislation , applied in 2024-2025, has profoundly changed the stablecoin S market in France and Europe. From now on, any stablecoin backed by a currency must rely on actual , liquid, regularly audited reserves, and be issued by an approved institution. Emitters must publish transparency reports and obtain an electronic currency license. The algorithmic stablecoin is therefore eliminated automatically because they do not meet these criteria. The price of stablecoin must remain aligned with the reference currency, strengthening confidence in cryptocurrencies .
TETH ( USDT ) was prohibited by MiCa because the company refused to comply with these requirements: it did not wish to place its reservations in European banks or accept the imposed audits. The CEO of Tether criticized these rules, deeming them incompatible with their model. Faced with this refusal, the main exchanges had to withdraw USDT to remain legally.
The exclusion of Tether upsets the ecosystem: it reduces access to the stablecoin which has the largest world capitalization for European users, obliges platforms to favor regulated stablecoin and redistributes the market for the benefit of Circle ( USDC ) or new stablecoin s in France . Users and institutional investors and individuals must therefore adapt to a more limited offer and assets subject to strict controls.
The stablecoin backed asset baskets or other cryptocurrencies are also concerned: they must publish detailed white buses and guarantee transparency on the nature of the most important assets in reserve. The platforms must remove any non -compliant stablecoin , limiting the choice to the most stablecoin .
In summary, MiCa strengthened security and transparency around stablecoin s in France , but has restricted access to the most used stablecoin Which one chooses now depends on compliance with this regulation, the quality of the reserves, the transparency of the transmitter and the type of collateralized or stablecoin -chosen stablecoin . The stablecoin s can be selected according to their compliance, their liquidity, and the robustness of their model: for example, a stablecoin via Circle offers more guarantees since this stablecoin meets the MiCa . Stablecoin according to MiCa must be transparent, regulated and guarantee the safety of stablecoin and funds for European users.
FAQ: stablecoins in 2025
What is a stablecoin ?
Stablecoin is a cryptocurrency stablecoin value is linked to that of a asset , generally a fiduciary currency like the dollar. Stablecoin s are designed to reduce the stablecoin of cryptocurrencies .
What are the advantages of stablecoinS?
The advantages of stablecoin s are stability, speed of transactions , liquidity and the possibility of staying in the crypto ecosystem without ironing by a fiduciary currency .
What are the disadvantages of stablecoins?
The drawbacks of stablecoin s are the risk of depending on, dependence on the quality of reserves or algorithms, and regulatory risks.
Which stablecoin to choose for decentralized finance?
DAI and FRAX are the most used decentralized stablecoin decentralized finance , but usdc and usdt remain the current leaders for their liquidity .
What is the best stablecoin in 2025?
USDC is considered to be the most reliable stablecoin for the majority of investors in 2025, but the best stablecoin depend on your specific needs.
Conclusion: How to choose a stablecoin ?
Choosing the stablecoin depends on your profile, your strategy and your confidence in stablecoin s issuers . USDC best transparency, USDT the greatest liquidity , dai and frax decentralization . Before buying stablecoin s, analyze the reserves , regulation, liquidity and reputation of each stablecoin . Stablecoin play a key role stablecoin managing your digital assets
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Noah
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
