The vast majority of cryptocurrencies are highly volatile which makes relying earnings on the coins extremely hard.
That’s why the likes of eToro, UK-based cryptocurrency payment processor Wirex and Japan’s first ever entry into the race, TiedCo, are sailing into the safe haven of the stable coin.
Wirth the world’s first stable coins backed by China and Russia, the social trading broker eToro has expanded their stable coin range to 10.
Wirex has also announced plans to launch 26 stable coins pegged to fiat currencies, including USD, EUR, GBP, HKD and SGD and TiedCo released a new stable coin fully collateralised by Euro and Yen at the beginning of this month.
According to Stable Report, 29 stable coin projects have been announced this year alone.
Catch em’ all
With less volatility, crypto-assets reach a much broader audience already, hence the race to catch those investors is in full gear.
Anyone that wants to benefit from the advantages of blockchain technology, like transparency, security, immutability, without losing guarantees like trust and stability provided by fiat currencies, finds all they have wished for in a stable cryptocurrency.
Companies that entered the stable coin battle need to brace themselves and differentiate their offering, other wise why would anyone chose their USD backed coin versus another company’s USD backed coin?
It will come down to the usability, and if the currency appears on the top exchanges.
Still the largest stable coin today by far is Tether, claiming that each token is backed by one USD.
However, since the beginning of this year, the company changed the backing to include loans to affiliate companies.
In a recent court case against the token giant it came to light that Tether used some of its dollar reserves to buy Bitcoin, while having claimed its stable coin is 100% backed by cash.
The race is on, but with a lot of noise in a crowded space and controversy clinging to the stable coins it is yet to be determined whether adoption will sprint as fast as Usain Bolt.