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5 Most Safest Stablecoins to Buy in 2023

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By Augustine Mbam - - 5 Mins Read
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Bitcoin, Ethereum, and other cryptocurrencies are not just the central assets of interest in the crypto market. Stablecoins are a very vital part of the growth of the industry as it bridges traditional finance and the crypto/blockchain world. In addition, the ups and downs in the crypto market have made investors appreciate stablecoins even more. Many people are becoming very much aware of the importance of having stablecoins in their portfolios. However, despite the importance of stablecoins, one needs to be extremely careful when choosing one to buy. 

There have been cases where stablecoins lose their pegs due to shaky reserves and a lack of transparency. Some of them abruptly collapsed, causing investors to lose their money — the case of TerraUSD is an example of such an issue. So in this article, you will learn some of the safest stablecoins that you have the choice of buying in 2023. 

Some stablecoins logos
  • Tether (USDT) 

Tether is one of the OGs of stablecoins, and it is not even putting on the brakes. Despite the controversies it has faced recently, it is still going strong in the crypto space and keeping up with its peg to the US dollar. Since its creation in 2014, the USDT has become one of the largest cryptocurrencies by market cap. 

According to those behind the project, the stablecoin's reserves are backed in US dollars and not by other cryptocurrencies. However, you still need to do your own research to ensure whatever Tether developers are saying is true.

  • Binance Stablecoin (BUSD) 

Binance stablecoin makes the list of top stablecoins in 2023, which is pretty merited for many reasons. Those issuing the stablecoin Paxos confirmed that the BUSD is backed 100% by US dollars. According to them, the BUSD reserves are held in the US treasuries and cash is stored in different US Bank accounts. With the issue Binance has been facing for a long time, the BUSD has seen and overcome different challenges

It has a substantial market capitalization of more than $6 billion. Apart from its robust ecosystem, the BUSD also comes with incentives as its parent crypto exchange Binance rewards users for using the stablecoin. 

  • True USD (TUSD) 

TUSD is a stablecoin launched in 2018 and has moved up the ranks of the top stablecoins. It is pegged to the US dollar and has kept its peg for many years. 

TUSD reserves are backed by 100% cash held by different trust corporations. With a market cap of $2 billion, TUSD still has a lot of room for growth. 

  • Dai (DAI) 

DAI makes it to this stablecoin list because of its uniqueness and project success. Unlike the BUSD, the developers of BUSD have reserves in other cryptocurrencies. This means that instead of having the DAI reserves in the US treasuries, it is stored using other cryptocurrencies. The DAI reserves are backed by other cryptocurrencies, primarily based on the Ethereum network. However, it has maintained its peg with the US dollar over the years. 

The stablecoin was created in 2019, and it has quickly grown to become one of the biggest stablecoins and cryptocurrencies. It has a market capitalization of more than $5, and it has not shown any signs of declining. 

  • USD coin (USDC) 

The USDC is another that makes the list of top stablecoin 2023 due to its expansive qualities. It is a stablecoin project backed by the crypto exchange Coinbase and Circle. Despite having a scare at the beginning of the year due to the Silicon Valley Bank collapse, it is still a go-to stablecoin. USDC reserves are said to be backed by 100% cash and US reserves. 

It is pegged to the US dollar and has a robust market cap. With the backing of Coinbase and one of the biggest crypto firms, Circle, the USDC has grown to have a market capitalization of more than $32 billion. This is very massive compared to other stablecoins and even the top cryptocurrencies.