According to Wikipedia, Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some “stable” asset or basket of assets.
A stablecoin can be pegged to a cryptocurrency, fiat money, or exchange-traded commodities (such as precious metals or industrial metals). Stablecoins redeemable in currency, commodities, or fiat money are said to be backed, whereas those tied to an algorithm are referred to as seigniorage-style (not backed).
Stablecoins are designed to maintain 1: 1 parity with the US Dollar and backed by the above-mentioned collaterals.
Further, the financials of companies offering stablecoins are regularly audited by an accounting firm to ensure the actual 1 : 1 ratio of US Dollars held in its deposits and reports are published monthly based on this.
Popular US-based Stable Coins
USDC — USD Coin (USDC) is a type of cryptocurrency that is referred to as a stablecoin. You can always redeem 1 USD Coin for US$1.00, giving it a stable price. On Coinbase, eligible customers can earn rewards for every USD Coin they hold.
Market Data
USDC Price — $ 1.00
Market Cap — $ 736,425,122
Trading Volume — $ 480,393,933
Features of USDC
Stable Value : For customers with a US dollar bank account, 1 USDC can always be redeemed for US$1.00, giving it a stable price.
Backed by US Dollar : Each USDC is backed by one US dollar, which is held in a bank account.
Powered by Ethreum : USDC is an Ethreum token, so you can store it in an Ethreum compatible wallet.
Global Transactions : USDC is designed to let dollars move globally from your crypto wallet to other exchanges, businesses, and people.
Where can you trade USD Coin
Coinbase
Bitfinex
Binance
Digifinex and many more.
Where can you use USD Coin
Abacus
Bitpay
Melonport
Coinbase commerce and many more.
Paxos Standard (PAX) — Paxos Standard combines US Dollar’s stability with the efficiency of blockchain technology.
Market Data
Paxos Standard Price — $ 1.0
Market Cap — $ 260,965,213
Trading Volume — $ 854,127,366
Features of Paxos Standard
Peer to peer : Instantly send and receive US dollars across the world.
Commerce : Use Pax to pay for goods and services.
Trading : Move instantly between crypto and dollars.
Holding : Enjoy the stability of the US dollar by converting your cash to PAX.
The most liquid regulated stable coin in the world as claimed by owners.
Monthly attestation reports are available which are audited by Withum, a nationally top-ranking auditing firm, to independently verify at specific points in time that the entire supply of Paxos Standard tokens is consistent with USD in reserve accounts at U.S. banks held and managed by Paxos.
Pax Ecosystem
Pax is now listed on over 150 exchanges, OTC desks, and wallets including,
Exchanges
Binance
Bcex
Hotbit
Digifinex and many more.
Trading Desks
Cumberland
OSL
Tritum
SFOX and many more.
Wallets
Coinomi
Bitpay
Epay
Freewallet and many more.
Gemini Dollar — The Gemini dollar (GUSD) issued by Gemini Trust Company LLC is meant to provide tokens built on the Ethereum network according to ERC20 standards corresponding 1:1 with holdings of traditional fiat USD held at State Street Bank and Trust Company. To verify the necessary 1:1 peg, the deposit balance at the U.S. Bank is examined monthly by BPM, LLP an independent registered public accounting firm.
Market Data
GUSD Price — $ 1.00
Market Cap — $ 6,447,286
Trading Volume — $ 1,173,910
Features of Gemini Dollar
Internet Money : The Gemini dollar combines the creditworthiness and price stability of the U.S. dollar with blockchain technology and the oversight of U.S. regulators.
Utility Meets Stability : Gemini dollar is the scalable stablecoin trusted by leading institutions, exchanges, and developers for 1:1 transferability with the U.S. dollar.
Transaction based circulation : The Gemini dollar sees high rates of turnover/redemption compared to many stablecoins — with volume-based on real transactions and use-based circulation.
Security Audit : The Gemini dollar is built on the Ethereum network according to the ERC20 standard for tokens. The code of the Gemini dollar smart contracts has been audited by Trail of Bits, Inc., an information security research & development firm, whose report is publicly available here.
GUSD Ecosystem
Exchanges
EXMO
Liquid
BitForex
FCoin
Supported By
Alchemy
Bidali
CYBAVO
DIZPAY
DCEX$ Digital Dollar : The new safe and trusted stablecoin from DCEX. DCEX Dollar can help boost everything from cross-border remittance to lending, and asset management. DCEX Dollar can become a reliable medium of P2P transactions throughout the world.
The following are the benefits and use cases of the stablecoins:
Secured Global Currency : DCEX Dollar will work as a global currency. Using our network of custodian banks, DCEX will be able to accept various world currencies, and quickly and affordably convert them into a USD backed stable coin without the costs traditionally associated with FOREX, and much more quickly than traditional SWIFT based international money movement.
Quick and Affordable : The primary benefit of our network is that we can leverage our international reach to allow for currencies to move across borders easily and affordably — without relying on traditional pathways like over the counter remittance services.
Efficient P2P and recurring transfers : There are smart contracts that exist on the blockchain network, that don’t require any human intervention to operate. These transactions are automatic, and they are transparent, irreversible, and auditable. Hence, it makes it ideal for any recurring payments, such as loan payments, monthly salary payments, continuous subscriptions, rental payments, and so on. For example, organizations that have employees all over the world. It will reduce the high fees and a long process of exchanging fiat currency from a bank account in New York to a European bank account. We expect our primary market at launch will be remittances between the U.S. and India.
Major Use Cases for DCEX Dollar
- For trading cryptocurrencies on various exchanges.
- To get ‘flat’ when done with trading on exchanges.
- As an option for digital asset managers to get flat.
- Money transmission via blockchain.
- Use in banking as a medium to move money, eg. Chase coin which is presently under development.
Future Potential of DCEX Dollar - Payment processor for credit cards
- Bank lending
- E-commerce payments.
- Can be security tokens for each of the institutions
Stablecoins could become an international standard for payment, tell us what your thoughts are on the future of Stablecoins in the comments. To learn more about DCEX$ or Digital dollars visit us at dcex.com.
