Circle’s initial public offering for its USDC stablecoin has revitalized investor attention toward the stablecoin sector, emphasizing Tether’s commanding market position and the expanding variety of collateral-backed digital assets.
Tether (USDT) maintains industry leadership with a $155.2 billion market capitalization, underpinned by reserves of U.S. dollar cash and short-term Treasury bonds. USDC, managed by the newly public Circle, follows with a $60.9 billion valuation using similar cash and Treasury security collateralization.
The market showcases increasing diversity beyond these top contenders, with stablecoins like USD1, FDUSD, and PYUSD operating under distinct collateral frameworks at smaller market capitalizations. Simultaneously, gold-backed alternatives have emerged, including Tether’s XAUT and Paxos’ PAXG, each token representing physical ownership of one ounce of London gold.