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Stablecoin Examples By Type At a Glance
A stablecoin is a digital token built to hold a steady value against an asset such as the US dollar, the euro or gold. Most real-world stablecoin examples fit one of four types, and the type tells you what stands behind the coin.
Fiat-collateralized coins such as USDT, USDC and EURC hold cash and short-term government debt. Commodity-backed coins such as PAXG and XAUT hold gold.
Crypto-collateralized coins include DAI and Sky’s USDS, which Sky says is backed by collateral worth more than the USDS in circulation. Algorithmic and hybrid designs such as AMPL and the failed TerraUSD rely partly or fully on code to manage supply. FRAX is usually grouped with them.
For treasury and supplier payments, most businesses start with dollar-backed coins. The right one still depends on what sits in its reserves and on the rules where you and your counterparties operate.
Stablecoin | Type | Backing | Issuer | Notable risk |
|---|---|---|---|---|
USDT (Tether) | Fiat-collateralized (USD) | Mostly US Treasury bills and cash equivalents, plus gold, bitcoin and secured loans | Tether International | Some reserves are not cash; reporting is a point-in-time attestation |
USDC | Fiat-collateralized (USD) | Fiat reserves; see issuer reports | Circle | Issuer and custodian risk |
EURC | Fiat-collateralized (EUR) | Fiat reserves; see issuer reports | Circle’s French e-money institution | Useful mainly where counterparties accept euro tokens |
GYEN | Fiat-collateralized (JPY) | Yen reserves | GMO Trust | Being wound down as of 5 November 2026; new issuance has ceased, per GMO Trust |
PAXG | Commodity-backed (gold) | Gold (see issuer terms) | Paxos | Value moves with the gold price |
XAUT (Tether Gold) | Commodity-backed (gold) | One fine troy ounce of physical gold per token, held in Switzerland | TG Commodities, S.A. de C.V. | Value moves with the gold price; redemption follows Tether’s terms |
DAI | Crypto-collateralized | Older crypto-collateralized coin; supply about $4.7B (DefiLlama, 4 November 2026) | Not assessed here | Not assessed here |
USDS | Crypto-collateralized | Collateral designed to exceed obligations; stablecoins the largest part (Sky, 12 June 2026) | Sky Protocol | Depends partly on the stablecoins in its collateral |
FRAX | Algorithmic and hybrid group | Varies with the protocol’s current design | Frax Finance | Design has changed over time; check Frax’s documentation |
AMPL | Algorithmic (rebasing) | No collateral; supply adjusts daily | Ampleforth protocol | Wallet balances change; target is an inflation-adjusted 2019 dollar |
TerraUSD (UST) | Algorithmic | No reserves; minted and burned against LUNA | Terraform Labs | Lost its peg and collapsed in May 2022 |
Understanding Stablecoins: Foundations and Market Impact
Every one of these stablecoin examples needs a reason for its market price to stay close to its target. Fiat and gold-backed issuers hold reserves and redeem tokens at a fixed rate. Crypto-collateralized protocols lock up extra collateral, algorithmic designs expand or shrink supply, and the peg holds only while holders trust the mechanism.
How Large the Stablecoin Market Is
The BIS Annual Economic Report 2025 says over 99% of stablecoins are US dollar-denominated.
DefiLlama’s stablecoin dashboard put total stablecoin supply at about $293 billion on 4 November 2026, with USDT and USDC the two largest.
Payment use is still small. As of mid-2025, McKinsey’s analysis The Stable Door Opens estimated stablecoin transactions at about $30 billion a day, under 1 percent of global money flows. Most of the activity was crypto trading.
Growth in Africa is faster. Chainalysis’s 2026 Sub-Saharan Africa crypto adoption report found stablecoins received through peer-to-peer channels grew from $2.3 billion in 2022 to $14.6 billion in 2026. Stablecoin remittances in the region more than doubled year over year, reaching $492 million.
Why Businesses in Africa and Emerging Markets Use Stablecoins
For companies that earn in volatile local currencies, a dollar stablecoin holds dollar value and can move outside banking hours. Blockchains settle around the clock, so a payment does not wait for a correspondent bank to open.
Cost and speed depend on the full route, so compare quotes for the same amount before assuming savings. McKinsey’s mid-2025 analysis describes stablecoin payments as lower cost, with minimal foreign transaction fees. The total still includes conversion spreads at each end and network fees.
Regulation, Trust and Reserve Reporting
Two rulebooks now shape which coins large counterparties will accept. In the EU, the stablecoin rules in Titles III and IV of MiCA, Regulation (EU) 2023/1114, have applied since 30 June 2024. Under Article 48, an e-money token issuer must be authorized as a credit institution or an electronic money institution.
In the US, the GENIUS Act became law on 18 July 2025 as Public Law 119-27. It provides for the regulation of payment stablecoins.
Issuer reports also differ in strength. An attestation checks reserves at one point in time, while an audit reviews full financial statements. Read which one you are getting.
Fiat-Collateralized Stablecoins: USDT, USDC and Euro Coins
Leading Dollar-Backed Stablecoins: USDT and USDC
USDT, issued by Tether, is the largest stablecoin. DefiLlama showed about $178.1 billion in circulation on 4 November 2026, about 61% of all stablecoin supply.
Tether’s Q3 2026 results reported about $183.5 billion of tokens issued at 30 September 2026, against assets of $191.45 billion. That leaves roughly $7.95 billion of excess reserves, and the gap with DefiLlama reflects different dates and methods.
The reserves report and BDO assurance opinion list $122.8 billion of US Treasury bills, about 64% of assets. Precious metals make up about 10%, secured loans about 7% and bitcoin about 4%. BDO’s opinion covers a single date and is not an audit.
USDC, issued by Circle, is second, with about $70.9 billion on DefiLlama on 4 November 2026. As of mid-2025, McKinsey said about 85 percent of USDC reserves were short-term US Treasuries or repurchase agreements, with the rest in cash. Check the issuer’s latest reports for the current mix.
Regulatory status separates the two in Europe. Circle’s French e-money institution, supervised by the ACPR, notified MiCA white papers for USDC and EURC in July 2024. USDT does not appear on the list, according to CASP Tracker, which mirrors the ESMA register.
For a business paying EU suppliers, that can decide which coin a counterparty’s provider will handle. Confirm any coin’s status on ESMA’s MiCA register page before you rely on it.
Euro and Yen Stablecoins: EURC, EURS and the GYEN Wind-Down
Euro coins let a business pay or hold euros on-chain without a European bank account. EURC, covered above, is on the MiCA list. For any other euro token, such as Stasis EURS, check the same ESMA register before using it with EU counterparties.
Yen coins carry a different lesson. As of 5 November 2026, GYEN is being wound down. Its issuer, GMO-Z.com Trust Company, began an orderly wind-down of GYEN and ZUSD on 15 May 2026, according to its fee schedule page.
GMO Trust has disabled new purchases. Its initial redemption period runs from 15 May to 11 November 2026.
GYEN did not lose its peg. It shows a quieter risk: an issuer can exit, and holders must redeem within a set window or rely on secondary markets.
Compliance, Transparency and Risk Management
Before adding any fiat-backed coin to treasury, check four things:
Which entity issues the coin, and which regulator supervises it.
Whether reserve reports are attestations or audits, and how often they appear.
Who can redeem directly with the issuer, and on what terms.
Whether your provider runs KYB, AML screening and Travel Rule checks on every transfer.
Commodity-Collateralized Stablecoins: Gold-Backed PAXG and XAUT
Gold-Backed Tokens: PAX Gold (PAXG) and Tether Gold (XAUT)
Gold-backed stablecoins tie each token to physical metal rather than a currency. PAX Gold (PAXG) is a gold-backed token issued by Paxos. Before holding it, read the issuer’s current reserve and redemption terms.
According to Tether Gold’s Q3 2026 reserve update, each XAUT token is backed by one fine troy ounce of physical gold. Tether Gold reported 827,417.63 XAUT in circulation at 30 September 2026, backed by gold worth about $3.44 billion. The gold is held in Switzerland.
The issuer is TG Commodities, S.A. de C.V., based in El Salvador, and redemption in physical gold follows Tether’s terms.
Gold As a Treasury Diversifier in Volatile Markets
Gold coins hold steady against gold, and their dollar value rises and falls with the metal price. That makes them a better reserve diversifier than a balance for paying next week’s invoices.
For a business in a high-inflation market, the appeal is holding gold value without vaults or bullion dealers. The trade-offs are price swings and fewer counterparties that accept gold for settlement. Your auditors will also need to sign off on the accounting treatment.
Yellow Card’s stablecoin and digital asset infrastructure supports Tether Gold alongside USDC, USDT and PayPal USD.
Crypto-Collateralized Stablecoins: DAI and Sky’s USDS
USDS: Overcollateralization, Governance and Business Use
According to Sky’s explainer on USDS, the collateral backing USDS is designed to exceed obligations at all times. On 12 June 2026, Sky reported total collateral of $14.39 billion against $10.6 billion in loan coverage. Later figures may differ.
The same page describes USDS as the native stablecoin of Sky Protocol, governed by SKY token holders. It names stablecoins, including USDC, USDT and PYUSD, as the largest part of the backing.
On 4 November 2026, DefiLlama showed about $6.5 billion of USDS in circulation. DAI, an older crypto-collateralized coin, had about $4.7 billion.
The label “crypto-collateralized” can mislead, because USDS depends partly on the fiat-backed issuers it is often pitched against.
Strengths and Risks of USDS for Treasury Teams
The main strength is visibility. Sky’s page sets out what backs USDS and how its collateral compares with its obligations.
The risks differ from fiat coins. For a protocol coin such as USDS, a smart contract bug, a governance decision or a fast fall in collateral prices could affect the peg. Your legal and compliance teams will also need to assess a protocol with no conventional issuer to contract with.
Algorithmic and Hybrid Stablecoins: FRAX, AMPL and the TerraUSD Collapse
How Algorithmic Models Work: Frax, Ampleforth and the Legacy of TerraUSD
Algorithmic stablecoins use code to expand or shrink supply instead of holding full reserves. Hybrids combine partial collateral with that code.
FRAX, from Frax Finance, is usually grouped with the algorithmic and hybrid designs. Its design has changed over time, so check Frax’s documentation for the current model before holding it.
Ampleforth (AMPL) works through rebasing. Its protocol documentation says supply adjusts daily at 2AM UTC when the price deviates from target by more than 5%. That target is a 2019 US dollar adjusted for consumer price inflation, so it drifts away from $1 over time.
After a rebase, every holder’s balance changes but their share of total supply stays the same. For a finance team, the token count in a wallet can change overnight without any transaction, which complicates reconciliation.
TerraUSD (UST) kept its peg by letting users swap UST for its sister token, LUNA. In May 2022, UST de-pegged from the dollar.
According to the US Securities and Exchange Commission, the collapse of UST and Terraform’s other tokens wiped out $40 billion in market value. Terraform and its founder later agreed to pay more than $4.5 billion to settle the SEC’s case.
Business Use Cases and Limitations
Algorithmic and hybrid coins can suit research, pilots or narrow on-chain automation. They are a poor fit for operating cash or supplier payments, because a loss of confidence can feed on itself, as Terra showed.
If your team does use them, set exposure limits and decide in advance what you will do if the peg breaks.
Strategic Application of Stablecoins for Businesses in Africa and Emerging Markets
Which Stablecoins Businesses Use for Treasury and Supplier Payments
Of all the stablecoin examples here, USDT and USDC are the usual starting point for business payments. That reflects their share of supply on DefiLlama. Which one fits depends on what your suppliers and their providers accept, and whether EU counterparties need a coin covered by MiCA.
Gold coins, crypto-collateralized coins such as USDS, and algorithmic designs play smaller roles in business treasury, for the reasons covered in the sections above.
Can a Kenyan Company Use Stablecoins for Treasury and Supplier Payments?
Yes, in principle, if it stays within Kenyan rules on virtual assets and foreign exchange. It also needs a provider that runs proper KYB and AML checks. Rules differ across African markets and change often, so confirm the current position with legal counsel before you start.
Say a Kenyan retailer owes a supplier in Germany for an order. It could convert shillings to USDC through its provider, send the USDC, and have it converted to euros for the supplier’s bank account.
Whether that beats a bank wire depends on the conversion spread at each end and the network fee. The supplier also has to agree to the route, so get a quote for the same amount both ways before switching.
Putting Stablecoins to Work With Yellow Card
Yellow Card supports payments in USD and 50+ local currencies. Finance teams that want a ready-made platform can use the Yellow Card Treasury Portal to move and convert funds from multi-currency wallets. It offers stablecoin-enabled settlement and access to local fiat rails.
Businesses that also need bank account details can open named USD, GBP and EUR accounts through Yellow Card Global Accounts, launched in October 2026. Balances convert between local currencies and supported stablecoins. Teams building their own flows can use the Yellow Card API Suite instead.
Next Steps for Finance Teams
Map one payment flow, such as a supplier corridor, where bank settlement times or FX exposure cause real problems.
Choose a coin using the checklist above, and confirm your counterparty will accept it.
Pilot in one market or entity, and compare total cost and settlement time against your current route.
Agree accounting, tax and compliance treatment with your advisers before scaling.
Stablecoin FAQ: De-Pegs, Digital Dollars and Regulation
Can Stablecoins Lose Their Peg?
Yes. Even a fully reserved coin can trade below its target on exchanges during stress. Its market price depends on confidence and on how easily holders can redeem.
As a general judgment, risk rises as backing moves away from cash and short-term government debt. Algorithmic designs carry the most, overcollateralized crypto designs sit in between, and fully reserved coins carry the least, though not zero.
Are Stablecoins the Same As Digital Dollars?
Not quite. Dollar stablecoins are often called digital dollars, but each is a private company’s liability, unlike a bank deposit.
McKinsey’s mid-2025 analysis warns that holders lack a legal claim to the underlying assets. In a bankruptcy, “holders may be treated as unsecured creditors.”
The position depends on the rulebook. Under MiCA Article 49, holders of authorized e-money tokens have a claim against the issuer.
Do MiCA and the GENIUS Act Apply to African Businesses?
Not directly. MiCA governs issuers and service providers in the EU, and the GENIUS Act is US federal law for payment stablecoins. Local regulators in Kenya, Nigeria, South Africa and other African markets set their own rules.
The two laws still matter indirectly, because they shape which coins your European and American counterparties are able to handle.
