$1.00
0.44%
$0.999545
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$0.998581
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TUSD Alternatives: Stablecoins Similar to TrueUSD
USDT
0.44%
USDC
-0.13%
PAX
-0.05%
1M agocoincodex
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TUSD Alternatives: Stablecoins Similar to TrueUSD

Key takeaways:

  • The TrueUSD stablecoin is quickly growing in popularity
  • However, TUSD alternatives are not in short supply on the market
  • A good number of the top stablecoins are backed by fiat currency reserves
  • Ethereum is the favorite blockchain for stablecoin developers

Introduction

TrueUSD has come a long way since its introduction in 2018, growing to become a favorite in the crypto market. It was launched by the Trust Token team and ranks among the stablecoins that have their value pegged to the US dollar.

Priding itself as the first transparency-focused and fully regulated stablecoin, it enjoys a key position on several major cryptocurrency exchanges. Coming up at number 37 on the list of the top cryptocurrencies by market cap, TrueUSD still has a long way to go. However, what it lacks in position, it compensates for being one of the pioneers of the evolving blockchain space.

Also known as TUSD, TrueUSD has helped to change the perception of people about stablecoins by maintaining its transparency in addition to being fully backed by USD reserves.

TrueUSD has found lots of use cases with individuals and companies which includes, but is not limited to cryptocurrency loans, margin funding and an interest-bearing assets. The TUSD can be purchased on the TrustToken platform by interested parties at the rate of 1:1 against the United States dollar.

Stablecoin types

The grouping of stablecoins is usually divided into 3 parts, namely:

  • Fiat-collateralized stablecoins supported by fiat currency reserves. Example: USD Coin.
  • Crypto-collateralized stablecoins supported by the backing of cryptocurrency reserves. Example: DAI.
  • Non-collateralized stablecoins, which aren't backed by any assets. Instead, the peg is maintained by constantly varying the token supply depending on demand.

The use of fiat currency as collateral for stablecoins is one of the most popular ideas to come out of the crypto industry, ensuring that stablecoins remain pegged to their target price.

Best True USD alternatives

The benefits derived from True USD are not limited to TUSD as there are many more stablecoins out there that can perform a very similar function. These alternatives will be discussed below.

1. Tether USD (USDT) - The highest ranking stablecoin

Chief among all stablecoins is the Tether-issued USDT. At $4.3 billion, its market cap is one of the biggest on the market, so it's no surprise that it is a favorite of crypto investors. This stablecoin can be accessed via many exchanges and its reach extends to more than one blockchain. It can be accessed on lots of platforms such as TRON, Ethereum, Omni Protocol (Bitcoin), EOS, etc.

Despite the popularity of Tether in the crypto industry, its lack of transparency is a frquent source of controversy.

Key Tether USD characteristics:

  • Created by Tether in 2014
  • Top stablecoin by trading volume and market cap
  • Backed by the U.S dollar
  • Accessible via various blockchain platforms

2. USD Coin (USDC) - The second largest stablecoin by market cap

USD Coin is the brainchild of CENTRE, a partnership between Coinbase and Circle. It is built on the Ethereum blockchain and supported by the US dollar. Coinbase, a cryptocurrency exchange, offers a yearly interest of 1.25% to investors who hold the USD Coin.

Key USD Coin characteristics:

  • Established in 2018 by CENTRE
  • Fiat-collateralized
  • Supported by the US dollar

3. Dai (DAI) - A worthy contender in the stablecoin market

DAI is one stablecoin that has chosen a strategy different from that of other stablecoins. Unlike others, DAI makes use of ETH and ERC20 tokens as collateral instead of the usual fiat currency adopted by other stablecoins.

Key Dai characteristics:

  • An idea from MakerDAO launched in 2017
  • Collateralized by ERC20 tokens and ETH
  • Backed by the U.S dollar

4. Paxos Standard Token (PAX) - A stablecoin that's easy to redeem 

Paxos, the company behind PAX, is also in charge of the itBit cryptocurrency exchange known. Paxos Standard resembles the other stablecoins that have been mentioned so far in the aspect of its design to trade at $1. PAX holders can quickly exchange it for USD through a 24/7 service the company provides to that effect. By market cap, PAX is the third-largest stablecoin.

Key Paxos Standard Token characteristics:

  • Established in 2018 by Paxos
  • Operates on Ethereum as an ERC20 token
  • Collateralized by the US dollar

5. Binance USD (BUSD) - A stablecoin linked To Binance

This is a stablecoin birthed by the coming together of Paxos and cryptocurrency exchange Binance. Binance USD is the same as PAX when its main features are compared. Paxos is in charge of the USD funds supporting the BUSD.

Key Binance USD characteristics:

  • Came into existence in 2019
  • Fiat-collateralized
  • Backed by the U.S dollar

6. Gemini Dollar (GUSD) - A trusted stablecoin

Launched in 2018 by Gemini, the Gemini Dollar stablecoin has a close resemblance to the TUSD, PAX and USD stablecoins. It functions using the Ethereum blockchain and through its issuer Gemini, the stablecoin can be exchanged for USD.

Key Gemini Dollar characteristics:

  • Unveiled in 2018 by Gemini
  • Fiat-collateralized
  • Backed by the U.S dollar

7. Stasis EURS (EURS) - A euro-backed stablecoin

This type of stablecoin is a rarity compared to its USD-backed counterparts. Since this stablecoin is backed by the Euro, it will find great use among those who prefer the Euro currency in their dealings. Stasis launched this stablecoin in 2018 and it was designed to operate on Ethereum blockchain.

Key Stasis EURS characteristics:

  • Rolled out in 2018 by Stasis
  • Fiat-collateralized
  • Pegged to the Euro

8. StableUSD (USDS) - A stablecoin that's easily accessible On Binance Chain and Ethereum

The StableUSD first came to the limelight in 2019 courtesy of its issuer, Stably. It is supported by the US dollar and PrimeTrust handles its USD reserves.

Key StableUSD characteristics:

  • Established in 2019 by Stably
  • Fiat-collateralized
  • Pegged to the US dollar
  • Can be accessed via Binance Chain and Ethereum

Conclusion

There is no end to the possibilities presented by stablecoins. If for any reason TrueUSD isn't meeting all of your needs, there are many more alternatives available on the market. Ethereum appears to be the go-to for stablecoin developers, therefore more interest should be channeled into it, especially if you're driven towards stablecoins for either development or investment purposes. So, regardless of whether you're looking for a fiat-supported stablecoin or a crypto-collateralized one, the stablecoin market is diverse enough to satisfy your needs.

1M agocoincodex
bullish:
0
bearish:
1