The prevalence of stablecoins in the crypto space has been increasing of late. Precisely, a report on blockchain.com indicated that there are nearly 60 stablecoins that have either been recently introduced or in the development stage.

A stablecoin is a digital currency whose value is pegged to the value of an underlying asset. The stability of such cryptocurrencies is relative to the prevailing value of their underlying asset.

As of now, the most popular stablecoin is Tether (USDT). The virtual coin is currently ranked eighth in terms of market capitalization value. Concerning daily trading volumes, only Bitcoin betters the performance of the USDT. Despite the impressive performances, Tether is marred by controversy. The reluctance of the team behind UDT to perform a public audit has created suspicions that the coin is not pegged on the dollar. Also, Tether is accused of skewing the price of Bitcoin.

The uncertainties facing Tether have given an opportunity to emerging stablecoin projects. Below are the most promising stablecoins that could challenge the dominance of Tether.

On October 1, the Tiberius Group AG, a Switzerland-based asset management and commodities trading firm, initiated the sale of a new stablecoin called the Tiberius Coin.

Unlike most stablecoins, the Tiberius Coin (TCX) is not backed by a single asset. Instead, it is peeved to several precious metals, including gold, platinum, copper, cobalt, aluminium, tin, and nickel. According to Giuseppe Rapallo, the CEO of Tiberius Group, the backing by various metals embraces diversity, increasing the stability of TCX and making it more attractive to investors.

Investors who trade in TCX are fundamentally investing in the metals market. Therefore, as the use of such metals increases in the technology sector over time, the value of TCX also appreciates.

Initially, TCX will cost $0.70. The sale of the token is compliant to the Swiss laws. As from November 1, TCX will be tradable on the LATOKEN crypto exchange that is based in Estonia.

LBXPeg is a stablecoin established by the UK-based London Block Exchange (LBX). The value of the coins is pegged to the value of the pound sterling (GBP) on a 1:1 ratio. Notably, these funds are stored on an auditable bank account in the United Kingdom.

LBXPEG enables users to transfer the digital equivalent of GBP globally through a decentralized network. Moreover, these transfers are fast, simple and secure. Because of the transparency of LBXPeg transactions, it is applicable to a wide range of use cases, including merchant payments and distribution of dividends to shareholders using smart contracts.

Additionally, LBX will use the Ethereum network to develop, distribute and manage the LBXPeg stablecoin. This is because LBXPeg is an ERC-621 token. The ERC-621 protocol enables the coin to have the flexibility in its total supply, a factor that is important if it is to match the amount of GBP stored in the set aside bank account.

In the future, LBX will launch the LBXPeg stablecoin based on other blockchain networks. Also, LBXPeg will be pegged on other popular fiat currencies such as the Euro and the US dollar to improve its stability.

Recently, the Bank of Mongolia granted an ‘electronic cash’ license to Mobicom, the country’s largest telecommunications firm. The license allowed Mobicom to establish a cryptocurrency token whose value is equal to the value of the Tugrik, the fiat currency for Mongolia.

Mobicom is the developer of Mongolia’s pioneering stablecoin, known as Candy. Although the coin was initially available to Mobicom subscribers only, it is now accessible to very Mongolian who owns a mobile phone. Candy can perform the tasks of a typical currency, including paying bills, online shopping, and transfer of funds and so on.

Paxos Standard (PAX) is the first digital asset in the world to be regulated. The coin was established in September 2018 by the Paxos Trust Company. PAX Tokens are pegged to the dollar in a 1:1 ratio. However, regulation by the New York Department of Financial Services gives PAX the upper hand over other stablecoins pegged on the dollar.

According to Charles Cascarilla, the CEO of Paxos, PAX is a cryptocurrency that incorporates the benefits of blockchain technology and the stability of the US dollars. Essentially, PAX is an advanced crypto asset that fuses the oversight and stability of traditional asset with the decentralization of blockchain technology.

During the circulation of PAX tokens, the corresponding dollars are stored in US banks accounts that are insured by the FDIC. When these cryptocurrencies are exchanged for dollars, they are destroyed instantly.

PAX is an ERC20 standard token based on the Ethereum blockchain. This means that Ethereum wallet owners can transact in PAX. Alternatively, users can also purchase and redeem PAX on Paxos.com. Lastly, investors who use the itBit crypto exchange or OTC trading desk can instantly cash pout their digital assets using PAX.

Similar to the Paxos Standard, the Gemini Dollar (GUSD) is an ERC20 stablecoin that is pegged to the dollar and is regulated by the New York Department of Financial Services. Amazingly, GUSD was launched on the same day as PAX. GUSD is a product of the Gemini Trust Company, a crypto exchange and custodial services platform owned by the Winklevoss twins.

As per the CEO of Gemini Trust, Tyler Winklevoss, GUSD blends the stability and trustworthiness of the US dollar with the benefits of blockchain technology and oversight from the New York Department of Financial Services.

Each GUSD token is backed by $1 stored in an account at the State Street Bank and Trust Company. The amount of USD in this account is evaluated on a monthly basis by BPM Accounting and Consulting. The results of these audits are available for public review on gemini.com. Also, the code that runs GUSD smart contracts has been identified as secure after analysis by Trail of Bits.

The USD Coin (USDC) is yet another stablecoin backed by the dollar. It is a product of the partnership between the CENTRE open-source consortium and Circle Internet Financial Ltd, a digital currency finance company.

At launch, USDC tokens were available exclusively to partner solutions. Currently, the USDC token is tradable on the Poloniex crypto exchange, a subsidiary of Circle. Later, it will be listed on other platforms such as OKEx, CoinEx, XDAEX, KuCoin, DigiFinex, and many others.

Jeremy Allaire, the CEO of Circle, believes that USDC is a significant improvement on the shortcomings of Tether. According to him, a stablecoin should be trustworthy, legitimate and embracive to openness. Jeremy, therefore, exacts investors to adopt USDC because it bears all of these qualities.

The verification of the dollar reserves backing the USDC will be overseen by Grant Thornton, a professional services company.

CarbonUSD (CUSD) is a stablecoin peeked on the dollar and built on the Ethereum blockchain. The cryptocurrency is a product of the Carbon platform and is available for traders, exchanges, hedge funds and institutional investors.

The standout feature of CUSD is the impending deployment of a distinctive hybrid algorithmic model on Herder Hashgraph by Carbon. In this regard, Miles Albert, a co-founder of Carbon, revealed that the algorithmic model had already been developed and tested. However, it will be executed after CUSD attains sufficient liquidity.

Allegedly, the set target for the deployment of the hybrid algorithmic model is a $1 billion market cap value for CUSD.

In June, Havven, a decentralized payment network, introduced nUSD, a stablecoin pegged to the dollar. Back then, the token was based on the Ethereum blockchain. Soon, it will also launch on the EOS blockchain.

Kain Warwick, the founder of Havven, said that digital currencies are still an emerging technology, making it difficult to identify blockchain networks that will handle scalability issues efficiently. This is the reason why nUSD will launch on multiple blockchains to ensure its perpetuity if one network fails to scale.

In the future, Havven will launch stablecoins based on other leading currencies such as the Euro, pound sterling and the Japanese Yen.

Stronghold USD is the pioneering stablecoin pegged on the dollar to be built on the Stellar network. The cryptocurrency enables investors to swap their dollars for Stellar Lumens (XLM) and other Stellar-based digital assets. This is done on the Stronghold platform. Prime Trust acts as the custodian of the crypto assets.

Besides, Stronghold is partnering with IBM to explore a number of use cases for Stronghold USD in the latter’s clientele. To this end, Jesse Lund, the global VP of IBM Blockchain, said that the tokenization of real-world assets using blockchain tech has the potential to revolutionize the financial services industry. For instance, fiat-backed cryptos such as the Stronghold USD token can ease the process of integrating blockchain tech for banks and other financial institutions because they do not have to alter their current infrastructure greatly.

The collaboration with IBM Blockchain will significantly contribute to the mainstream adoption of the Stellar network. Presently, Stronghold USD is not available for retail investors. For now, interested institutional investors can register for the beta program on stronghold.com.

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