Welcome to the second edition of stative.

Today, sit back with a good cup of coffee (or hot drink of choice) and let me tell you a little story…

Market overview

• Market cap of the stablecoin market is still hovering around its all-time-high

• Trading volume is significantly up in the last 24h but around 5% below last edition’s level

• The fear in the overall crypto market and the capital markets in general is elevated, largely due to the politics of the US

• Consequently, many investors are de-investing from risk- assets and further towards more stable assets and by that continuing the trend started in January

• There have been no major changes on the relevance of the biggest stablecoins or on what chain ecosystems they are running on

I like this bullet-point styled market overview a lot more - I think I will keep it somewhat like this.

Interesting news

• Thailand approves the stablecoins USDT and USDC for trading on regulated exchanges: This decision allows regulated exchanges to officially accept these stablecoins, strengthening the adoption of digital assets in the country.

• Eurogroup leaders hawk US stablecoins as driver for digital euro: Following a meeting of the Eurogroup of EU finance ministers yesterday, participants promoted the idea that there’s now an urgent need for a European central bank digital currency (CBDC), or digital euro, because Donald Trump wants dollar stablecoins to proliferate worldwide.

History of stablecoins

Before stablecoins, E-Gold (1996) pioneered the idea of digital money backed by real-world assets. It was widely used for global payments—until regulators shut it down in 2009, citing money laundering risks. Around the same time, the 2008 financial crisis shattered trust in banks, fueling demand for alternatives.

Bitcoin (2009) solved E-Gold’s centralization problem but introduced a new issue: extreme volatility. If digital money was to be truly useful for everyday transactions, it needed price stability.

By 2014, projects like BitUSD (crypto-backed) and NuBits (algorithmic) tried to create price-stable crypto assets. At the same time, Realcoin emerged, backed 1:1 by US dollars.

Realcoin soon rebranded as Tether (USDT) to emphasize its role in “tethering” crypto to fiat. It revolutionized crypto trading, making it easier to move liquidity between exchanges. However, concerns over its reserve backing and lack of transparency triggered regulatory scrutiny—an issue still unresolved today.

By 2019, big corporations wanted in. Facebook (Meta) launched Libra, aiming for a global digital currency controlled by a corporate consortium. Regulators killed the project before it even launched, fearing loss of monetary control. Meanwhile, governments started working on CBDCs (Central Bank Digital Currencies) to create state-controlled stablecoin alternatives.

Fast forward to 2023, and PayPal launched PYUSD, a USD-backed stablecoin issued by Paxos. Unlike USDT, it was fully regulated and transparent, showing how stablecoins were shifting from the Wild West to mainstream finance.

Despite regulatory pressure, stablecoins are now essential to crypto, DeFi, and even traditional payments. Big finance no longer ignores them—Stripe’s $1+ billion acquisition of Bridge (2024) proves that stablecoins aren’t just a niche crypto tool but a core part of the future payments infrastructure.

Governments see stablecoins as a threat to financial sovereignty but a necessity for digital payments. With corporate adoption and billion-dollar deals, stablecoins have moved from the fringes of crypto into the center of financial innovation. The next battle? Regulation vs. decentralization.

List of all relevant stablecoin projects (so far)

I wanted to create a comprehensive list with the most relevant information on the most relevant stablecoins projects so far.

While doing it, I realized this task was a lot bigger than expected because of course there were countless projects and some of them were rather short-lived.

Consequently I decided to do a chronological list of the ones I subjectively consider most relevant historically. The closer I come to today, the more relevant their current market cap becomes. So once you reach the end of this list, you can be sure that all stablecoins that have a market cap of above 100m USD are included in the list.

At the end of today’s edition, I am summarising this chronological history in an illustration.

Have fun with it!

BitUSD (bitUSD)

• Launch: 2014

• Status: Discontinued (around 2018)

• Model: Crypto-collateralized

• Emittent: BitShares (decentralized platform)

• USPs / Specials: One of the earliest decentralized stablecoins, pegged to USD via BitShares’ smart contracts and over-collateralized by BTS (BitShares token).

• Critics / Problems: Lack of adoption, complexity of the BitShares ecosystem, and inability to maintain peg during market volatility led to its decline.

Tether (USDT)

• Launch: 2014

• Status: Active

• Model: Fiat-collateralized

• Emittent: Tether Limited

• USPs / Specials: Most widely used stablecoin, high liquidity, multi-chain support (Ethereum, Tron, etc.).

• Critics / Problems: Opaque reserve transparency historically, regulatory scrutiny (fined by CFTC in 2021), concerns over full backing of reserves.

NuBits (USNBT)

• Launch: 2014

• Status: Discontinued (around 2018)

• Model: Algorithmic

• Emittent: Nu (decentralized network)

• USPs / Specials: Early attempt at an algorithmic stablecoin, aimed to adjust supply via community governance.

• Critics / Problems: Failed to maintain peg due to insufficient demand and flawed economic model, leading to collapse.

Dai (DAI)

• Launch: 2017

• Status: Active (rebranded to USDS in 2024 by Sky Protocol, but DAI still exists)

• Model: Crypto-collateralized

• Emittent: MakerDAO (now Sky Protocol)

• USPs / Specials: Decentralized, over-collateralized by ETH and other crypto assets, governed by a DAO.

• Critics / Problems: Heavy reliance on USDC in reserves at times (up to 50% historically, now reduced), complexity for new users.

TrueUSD (TUSD)

• Launch: 2018

• Status: Active

• Model: Fiat-collateralized

• Emittent: TrustToken (now Archblock)

• USPs / Specials: Regular third-party audits, transparency in reserve backing.

• Critics / Problems: Minor depegging incidents (e.g., 2023), less liquidity compared to USDT/USDC.

STASIS EURO (EURS)

• Launch: 2018

• Status: Active

• Model: Fiat-collateralized

• Emittent: STASIS

• USPs / Specials: Pegged to the Euro, targets European market, audited reserves.

• Critics / Problems: Limited adoption outside Europe, smaller market cap compared to USD stablecoins.

USD Coin (USDC)

• Launch: 2018

• Status: Active

• Model: Fiat-collateralized

• Emittent: Circle (in partnership with Coinbase)

• USPs / Specials: High regulatory compliance (MiCA in EU), backed by U.S. Treasury securities and cash, transparent reserves.

• Critics / Problems: Temporary depegging in March 2023 due to Silicon Valley Bank exposure, centralized control.

Pax Dollar (USDP)

• Launch: 2018 (originally as Paxos Standard)

• Status: Active

• Model: Fiat-collateralized

• Emittent: Paxos

• USPs / Specials: Regulated by NYDFS, monthly audits, bankruptcy-remote structure.

• Critics / Problems: Limited adoption and liquidity compared to USDT/USDC.

Gemini Dollar (GUSD)

• Launch: 2018

• Status: Active

• Model: Fiat-collateralized

• Emittent: Gemini

• USPs / Specials: Regulated by NYDFS, tied to Gemini exchange ecosystem.

• Critics / Problems: Niche usage, low market cap, minimal growth outside Gemini’s platform.

Synthetix USD (sUSD)

• Launch: 2018

• Status: Active

• Model: Crypto-collateralized (synthetic)

• Emittent: Synthetix Protocol

• USPs / Specials: Part of the Synthetix ecosystem, backed by SNX staking, used in DeFi.

• Critics / Problems: Peg instability at times, limited use outside Synthetix, complexity.

Binance USD (BUSD)

• Launch: 2019

• Status: Discontinued (2023, issuance halted; still tradable)

• Model: Fiat-collateralized

• Emittent: Paxos (in partnership with Binance)

• USPs / Specials: Integrated with Binance ecosystem, regulated by NYDFS.

• Critics / Problems: Issuance halted by regulators in Feb 2023 due to Paxos compliance issues, declining market share.

Diem (DIEM)

• Launch: Planned 2019 (as Libra), never fully launched

• Status: Discontinued (2022)

• Model: Fiat-collateralized (planned)

• Emittent: Meta (via Diem Association)

• USPs / Specials: Backed by a basket of fiat currencies, aimed for global payments.

• Critics / Problems: Regulatory pushback worldwide, privacy concerns, project abandoned.

TerraUSD Classic (USTC)

• Launch: 2020 (as TerraUSD)

• Status: Discontinued (2022, renamed USTC post-collapse)

• Model: Algorithmic

• Emittent: Terra (Terraform Labs)

• USPs / Specials: Decentralized, paired with LUNA for stability.

• Critics / Problems: Catastrophic depegging in May 2022, lost peg due to algorithmic failure, wiped out billions in value.

Frax (FRAX)

• Launch: 2020

• Status: Active

• Model: Fractional-algorithmic

• Emittent: Frax Finance

• USPs / Specials: Hybrid model (partially collateralized, partially algorithmic), scalable, DeFi-focused.

• Critics / Problems: Complexity, occasional peg wobbles, reliance on community governance.

Fei (FEI)

• Launch: 2021

• Status: Discontinued (2022)

• Model: Algorithmic

• Emittent: Fei Labs

• USPs / Specials: Decentralized, used protocol-controlled value (PCV) for stability.

• Critics / Problems: Failed to maintain peg, governance issues, project wound down.

USDD (Decentralized USD)

• Launch: 2022

• Status: Active

• Model: Algorithmic (initially partially collateralized, now overcollateralized)

• Emittent: TRON DAO Reserve (founded by Justin Sun)

• USPs / Specials: Designed as a decentralized stablecoin on the TRON network, originally modeled after Terra’s UST but later shifted to an overcollateralized model with BTC, USDT, and TRX reserves.

• Critics / Problems: Initial concerns over depegging risks and similarities to the failed TerraUSD (USTC). The peg has wobbled at times, raising doubts about its long-term stability.

Euro Coin (EURC)

• Launch: 2022

• Status: Active

• Model: Fiat-collateralized

• Emittent: Circle

• USPs / Specials: Pegged to Euro, MiCA-compliant, backed by reputable institutions.

• Critics / Problems: Smaller market compared to USDC, Eurozone focus limits global reach.

PayPal USD (PYUSD)

• Launch: 2023

• Status: Active

• Model: Fiat-collateralized

• Emittent: PayPal (via Paxos)

• USPs / Specials: Backed by PayPal’s brand, integrated into its payment network, regulated.

• Critics / Problems: Centralized control, limited DeFi adoption, early-stage growth.

GHO (GHO)

• Launch: 2023

• Status: Active

• Model: Crypto-collateralized

• Emittent: Aave Protocol

• USPs / Specials: Decentralized, integrated with Aave lending, over-collateralized.

• Critics / Problems: Niche use case, early adoption phase, peg stability untested long-term.

Curve USD (crvUSD)

• Launch: 2023

• Status: Active

• Model: Crypto-collateralized

• Emittent: Curve Finance

• USPs / Specials: Designed for Curve’s DeFi ecosystem, over-collateralized with crypto assets.

• Critics / Problems: Limited scope outside Curve, newness raises stability questions.

Ondo USD Yield (USDY)

• Launch: 2023

• Status: Active

• Model: Fiat-collateralized (U.S. Treasury-backed)

• Emittent: Ondo Finance

• USPs / Specials: Offers yield to holders, tokenized money market fund, regulated.

• Critics / Problems: Niche market, less liquidity, regulatory reliance.

Euro Coin Vertible (EURCV)

• Launch: 2023

• Status: Active

• Model: Fiat-collateralized

• Emittent: Societe Generale (via SG Forge)

• USPs / Specials: Pegged to Euro, issued by a major bank, institutional focus.

• Critics / Problems: Limited retail adoption, centralized, small scale.

First Digital USD (FDUSD)

• Launch: 2023

• Status: Active

• Model: Fiat-backed (USD reserves)

• Emittent: First Digital Group (Hong Kong-based)

• USPs / Specials: Positioned as a regulated, compliant stablecoin, gaining traction due to Binance’s heavy promotion.

• Critics / Problems: Relatively new, adoption still low outside Binance. Regulatory landscape in Hong Kong remains uncertain.

USD0 (Mountain Protocol)

• Launch: 2023

• Status: Active

• Model: Yield-bearing (backed by short-term U.S. Treasuries)

• Emittent: Mountain Protocol

• USPs / Specials: SEC-registered, allowing it to generate yield while being a regulated stablecoin. Focused on institutional and DeFi users.

• Critics / Problems: Could face scrutiny as securities laws around yield-bearing stablecoins evolve. Limited adoption outside crypto-native finance.

USDG (Global USD)

• Launch: 2023

• Status: Active

• Model: Fiat-backed (USD reserves)

• Emittent: GMO Trust (Japanese financial group GMO)

• USPs / Specials: First Japan-backed U.S. dollar stablecoin with regulatory approval in New York and Japan.

• Critics / Problems: Low adoption outside Japan. Must compete with USDC, Tether, and newer stablecoins like FDUSD.

RLUSD (Real USD)

• Launch: 2024

• Status: Active

• Model: Fiat-backed (USD reserves)

• Emittent: Ripple (via Ripple Payments)

• USPs / Specials: Part of Ripple’s broader payments ecosystem, targeting enterprise and cross-border payments.

• Critics / Problems: Seen as a direct response to PayPal’s PYUSD, but faces regulatory challenges and competition from existing players.

Ethena USDe (USDE)

• Launch: 2024

• Status: Active

• Model: Synthetic (crypto-backed with hedging)

• Emittent: Ethena Labs

• USPs / Specials: Yield-bearing, uses crypto hedging to maintain peg, innovative design.

• Critics / Problems: New and untested long-term, complexity, potential counterparty risks.

Illustration of the history of stabelcoins

Thanks for reading in 🤍

// Kai