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intCount-StableCoin

Why Regulators Recently Pay a Close Attention to Stablecoin

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What are the types of stablecoins and who are behind the three largest stablecoins?

Types

Generally speaking, there are three types of stablecoins: – Fiat backed – Crypto backed – Algorithmic

First largest stablecoin

USDT is the largest stablecoin in the crypto market, Tether issued the USDT coin. Tether is based in Hong Kong and it is closely affiliated with Bitfinex, a Hong Kong based cryptocurrency exchange.

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Technical gibberish

Tether issued first the USDT coin in 2014, and they build it on the top of the Bitcoin using Omni layer protocol. Nowadays, 50 % of the USDT coins exists on Ethereum Blockchain as an ERC20 token.

Tether makes money from USDT thanks to the fees, They charge 0.1% for all fiat deposits and withdraws. Also, users should pay a non refundable 150$ for QYC verification, which is necessary to mint or redeem USDT.

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Second largest stablecoin

USDC is the second largest stablecoin, which was initially issued on September 2018 by Center consortium.

Center consortium is nothing else than a partnership between Circle, the peer to peer payment company based in Boston Massachusetts, United states and Coinbase, one of the top cryptocurrency exchanges in the U.S.

Technical gibberish

USDC is primarily an ERC-20 token, where Ethereum is the blockchain where most of the USDC coin circulate. Algorand, Solano, Tron and Stellar Blockchains maintain USDC as well.

If you ask about from where Circle makes most of its money? the answer is from payment made using USDC.

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Since Center consortium had a recent partnership with VISA network.

Third largest stablecoin

BUSD is the third largest circulating stablecoin in the cryptomarket, Paxos was behind this coin. A large U.S company based in New York.

Actually, BUSD is the product of the partnership between Paxos and Binance. Where Binance is the World’s Leading Blockchain Ecosystem and Digital Asset Exchange.

BUSD exists on Ethereum, the Binance chain and the Binance smart chain.

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