What are Some Stablecoins to Look Out for in 2021?Feb 15, 2021, 8:23PM
Stablecoins are a dime a dozen these days. With so many out there, it can be difficult for interested investors to pick the best.
Fortunately, we’re here to help. With this list, we’ll detail the best stablecoins to look out for in 2021.
Speaking of precious metals, Palladium Coin is another stablecoin to keep an eye on in 2021. This is an Ethereum-powered stablecoin that’s tied to the value of palladium. It enables investors to purchase the asset easily and anonymously.
Plus, those who don’t want to invest a ton of money can buy fractional amounts of palladium. This feature is not available with traditional purchases of the metal. It’s an ideal way to invest in the safe-haven asset and the future for precious metal investments.
The entire purchasing system is automated, and you can even request physical palladium should you so choose. However, note that you cannot remain anonymous while doing so.
Paxos Standard (PAX)
The Paxos Standard stablecoin is compatible with the United States dollar. It allows users to transact value anywhere around the world with minimal fees and transfer times. It’s one of the only regulated stablecoin services, backed by the New York State Department of Financial Services (NYDFS).
Basically, it’s a digital dollar. The asset also has Pax Gold, a gold-backed stablecoin, for investors interested in precious metals.
Gemini Dollar (GUSD)
The Gemini Dollar is a stablecoin backed by the Winklevoss Twins’ Gemini Exchange. Similar to Tether and TrueUSD, it’s tied to the United States dollar. Also built on the Ethereum blockchain, GUSD is also regulated by the NYDFS.
This asset has a market capitalization of more than $14 million and is FDIC-insured just in case. Its regulation is a surefire way to entice institutional investors.
DAI is a stablecoin created by the MakerDAO platform. It’s a stablecoin tied to the United States dollar and works with a ton of decentralized applications on Ethereum.
MakerDAO utilizes DAI for users to lend and borrow funds on its platform. That, and users can pay for anything Ethereum-compatible. Having been around for a few years now, it’s one of the only stablecoins to remain close to, if not exactly, the value of one dollar.
Developers can also build unique apps utilizing the DAI ecosystem. Similar to Ethereum, this provides DAI with unlimited potential.
EOSDT is built on the EOS blockchain network, providing its first stablecoin development process. Essentially, a user can generate an EOSDT token whenever they please. Then, they choose an asset like the dollar or precious metal and tie the values together.
Once done, the token can be used to store ownership of physical assets, or to trade them as well.
Binance USD (BUSD)
BinanceUSD is a stablecoin developed and run by the world’s largest exchange: Binance. It’s built on Ethereum and tied to the American dollar. This stablecoin serves a bit of a different use case than the others - it helps with trading fees on Binance.
Basically, buying BUSD makes buying other assets on the platform cheaper. The exchange provides a ton of discounts for doing so. That, and Binance has even added staking support so you can earn interest on your crypto, should you so choose.
BUSD is even FDIC-insured, so there’s no risk of your money lost due to theft or other issues.
TrueUSD is a traditional stablecoin tied to the United States dollar. It is a direct competitor to Tether (USDT), which is undergoing some regulatory trouble as of this time.
Essentially, Tether refuses to prove it has the dollars to back its stablecoins. TUSD counters this by constantly auditing itself with a third-party group and making the results public. This way, it can build trust with the community.
Of course, if it is to take off, this could be a death sentence for Tether’s shady practices.
There are various other stablecoins on the market - some of which are worth examining as well. However, the seven listed here are surefire projects. Each one has a valuable use case and a bright future ahead of it. Good luck investing!
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.