★ Score sheet10 servicesLast updated · July 2026

Best Stablecoins — July 2026

Stablecoins are cryptocurrencies designed to hold a stable value against a reference asset (usually the US dollar). Leaders by total circulating supply: Tether (USDT) at $180B+, USD Coin (USDC) at $70B+, Dai (DAI), Ethena USDe, First Digital USD (FDUSD), and PayPal USD (PYUSD).

Curated by Chelsea Crawford · Security & Self-Custody Correspondent

Services scored

ranked & reviewed

Average score

6.9

across all entries

Top contender

USD Coin (USDC)

9.5 / 10

Refreshed

July 2026

re-tested monthly

At a glance

The best stablecoins — july 2026 compared

Side-by-side rankings of the top contenders. Tap any row to jump to the full breakdown below.

10 entries

#	Service	Best for	Score	Circulating supply	Issuer	Review
🥇	USD Coin (USDC)	US and EU users who need a fully-compliant stablecoin with the strongest regulatory posture and full public audit trail.	9.5	$73.37B	Circle	Review →
🥈	USDS (Sky)	Users seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.	8.3	$6.68B	Sky Protocol (MakerDAO successor)	Review →
🥉	PayPal USD	US and EU users who need a fully-compliant stablecoin with the strongest regulatory posture and full public audit trail.	8.3	$2.75B	Paxos Trust Company (for PayPal)	Review →
#4	DAI	Users seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.	7.7	$4.85B	MakerDAO / Sky	Review →
#5	Tether (USDT)	High-liquidity trading on non-US venues where regulatory posture is less important than accepted-pair depth.	7.0	$184.15B	Tether Ltd	Review →
#6	Ethena USDe	Users seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.	6.8	$4.04B	Ethena Labs	Review →
#7	First Digital USD	Users seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.	6.3	$346.31M	First Digital Trust	Review →
#8	Frax	Users seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.	5.8	$166.47M	Frax Finance	Review →
#9	TrueUSD (TUSD)	Users with specific ecosystem preferences that TrueUSD (TUSD) serves — verify regulatory status in your jurisdiction before large positions.	5.0	$482.73M	Techteryx	Review →
#10	USDD (TRON)	Users with specific ecosystem preferences that USDD (TRON) serves — verify regulatory status in your jurisdiction before large positions.	4.4	$1.51B	TRON DAO Reserve	Review →

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Deep dive

In-depth reviews

Full criteria breakdown for each service. Click through to the dedicated review for the long-form analysis.

USD Coin (USDC)

Best forUS and EU users who need a fully-compliant stablecoin with the strongest regulatory posture and full public audit trail.

Overall

9.5

Score breakdown

Supply

9.0

Transparency

10.0

Regulation

10.0

Collateral quality

10.0

Depeg history

8.0

Adoption

10.0

+Why these scores

Supply · 9.0/10: Circulating supply of $73.37B — top-tier stablecoin by adoption. Widely accepted across CEXs and DeFi.
Transparency · 10.0/10: Circle is a publicly-listed US company (NYSE: CRCL, IPO 2024) — quarterly 10-Q + annual 10-K SEC filings. Monthly reserve attestations by Deloitte. Reserves held at BNY Mellon and other regulated US banks. Highest-transparency stablecoin issuer.
Regulation · 10.0/10: US FinCEN-registered MSB. NYDFS approved. EU MiCA-compliant via Ireland (issuing EURC and USDC compliantly in EU). Licensed in most US states. Fully compliant across all major jurisdictions.
Collateral quality · 10.0/10: Reserves entirely in cash and short-duration US Treasuries — highest-quality collateral available. No lending, no commercial paper, no exotic assets.
Depeg history · 8.0/10: March 2023: depegged to $0.87 briefly during Silicon Valley Bank crisis when $3.3B of reserves were temporarily exposed. Recovered fully within 3 days once federal deposit guarantee was extended. No other meaningful depeg events.
Adoption · 10.0/10: Top-3 stablecoin by supply — used as base currency across virtually every CEX and DEX.

▲ Pros

Supply (9/10): Circulating supply of $73.37B — top-tier stablecoin by adoption
Transparency (10/10): Circle is a publicly-listed US company (NYSE: CRCL, IPO 2024) — quarterly 10-Q + annual 10-K SEC filings
Regulation (10/10): US FinCEN-registered MSB
Collateral quality (10/10): Reserves entirely in cash and short-duration US Treasuries — highest-quality collateral available
Depeg history (8/10): March 2023: depegged to $0.87 briefly during Silicon Valley Bank crisis when $3.3B of reserves were temporarily exposed
Adoption (10/10): Top-3 stablecoin by supply — used as base currency across virtually every CEX and DEX

▼ Cons

Circulating supply$73.37BIssuerCirclePeg mechanismCash + US TreasuriesTransparency10/10Regulation10/10Depeg history8/10

Full review

USDS (Sky)

Best forUsers seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.

Overall

8.3

Score breakdown

Supply

8.0

Transparency

9.0

Regulation

6.0

Collateral quality

8.0

Depeg history

9.0

Adoption

10.0

+Why these scores

Supply · 8.0/10: Circulating supply of $6.68B — well-established stablecoin with meaningful market presence.
Transparency · 9.0/10: Sky is MakerDAO's rebranded successor. Same on-chain transparency model as DAI — vaults and collateral fully public. Yield-bearing variant sUSDS available.
Regulation · 6.0/10: Decentralized issuer. Same regulatory posture as DAI — no central entity to regulate, but RWA touch.
Collateral quality · 8.0/10: Same collateral base as DAI. Mixed crypto + RWA + USDC.
Depeg history · 9.0/10: Launched 2024 as a MakerDAO rebrand. No material depeg events. Inherits DAI's operational track record.
Adoption · 10.0/10: Top-3 stablecoin by supply — used as base currency across virtually every CEX and DEX.

▲ Pros

Supply (8/10): Circulating supply of $6.68B — well-established stablecoin with meaningful market presence
Transparency (9/10): Sky is MakerDAO's rebranded successor
Collateral quality (8/10): Same collateral base as DAI
Depeg history (9/10): Launched 2024 as a MakerDAO rebrand
Adoption (10/10): Top-3 stablecoin by supply — used as base currency across virtually every CEX and DEX

▼ Cons

Regulation (6/10): Decentralized issuer

Circulating supply$6.68BIssuerSky Protocol (MakerDAO successor)Peg mechanismOvercollateralized crypto + RWATransparency9/10Regulation6/10Depeg history9/10

Full review

PayPal USD

Best forUS and EU users who need a fully-compliant stablecoin with the strongest regulatory posture and full public audit trail.

Overall

8.3

Score breakdown

Supply

5.0

Transparency

9.0

Regulation

9.0

Collateral quality

10.0

Depeg history

10.0

Adoption

6.0

+Why these scores

Supply · 5.0/10: Circulating supply of $2.75B — mid-tier adoption; not yet in the primary trading pairs on major venues.
Transparency · 9.0/10: Monthly attestations by WithumSmith+Brown. NYDFS-supervised. Reserves fully backed by cash and US Treasuries.
Regulation · 9.0/10: NYDFS BitLicense holder. Paxos is US Trust Company. Not EU MiCA registered as of 2026 but regulatory strong-hand US.
Collateral quality · 10.0/10: Cash and US Treasuries only. Same quality tier as USDC.
Depeg history · 10.0/10: Launched 2023, no depeg events. Backed by PayPal's brand and Paxos's operational maturity.
Adoption · 6.0/10: Top-10 stablecoin — supported on most major exchanges but not always available as primary pair.

▲ Pros

Transparency (9/10): Monthly attestations by WithumSmith+Brown
Regulation (9/10): NYDFS BitLicense holder
Collateral quality (10/10): Cash and US Treasuries only
Depeg history (10/10): Launched 2023, no depeg events

▼ Cons

Supply (5/10): Circulating supply of $2.75B — mid-tier adoption; not yet in the primary trading pairs on major venues
Adoption (6/10): Top-10 stablecoin — supported on most major exchanges but not always available as primary pair

Circulating supply$2.75BIssuerPaxos Trust Company (for PayPal)Peg mechanismCash + TreasuriesTransparency9/10Regulation9/10Depeg history10/10

Full review

DAI

Best forUsers seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.

Overall

7.7

Score breakdown

Supply

7.0

Transparency

9.0

Regulation

6.0

Collateral quality

8.0

Depeg history

8.0

Adoption

8.0

+Why these scores

Supply · 7.0/10: Circulating supply of $4.85B — well-established stablecoin with meaningful market presence.
Transparency · 9.0/10: MakerDAO's vault positions and collateral are fully on-chain and publicly auditable in real-time. Reserve composition (crypto vs RWA vs T-bills) transparent via Dune dashboards. DAO governance decisions are open.
Regulation · 6.0/10: MakerDAO operates as a decentralized autonomous organization — no central issuer to license or regulate. RWA collateral (US Treasuries via Monetalis, BlockTower) creates indirect regulatory touch. Not explicitly permitted or prohibited in most jurisdictions.
Collateral quality · 8.0/10: Mixed collateral: ETH, WBTC, USDC (30-50% historically), and RWA (US Treasuries). Overcollateralization ratio typically 150%+ across the system. Some concentration risk in USDC dependency.
Depeg history · 8.0/10: March 2020 Black Thursday event caused temporary liquidation shortfalls but DAI held peg via emergency measures. Minor depegs during high volatility events; always recovered within days.
Adoption · 8.0/10: Top-5 stablecoin — broadly accepted across major venues.

▲ Pros

Transparency (9/10): MakerDAO's vault positions and collateral are fully on-chain and publicly auditable in real-time
Collateral quality (8/10): Mixed collateral: ETH, WBTC, USDC (30-50% historically), and RWA (US Treasuries)
Depeg history (8/10): March 2020 Black Thursday event caused temporary liquidation shortfalls but DAI held peg via emergency measures
Adoption (8/10): Top-5 stablecoin — broadly accepted across major venues

▼ Cons

Supply (7/10 — noticeable weakness): Circulating supply of $4.85B — well-established stablecoin with meaningful market presence
Regulation (6/10): MakerDAO operates as a decentralized autonomous organization — no central issuer to license or regulate

Circulating supply$4.85BIssuerMakerDAO / SkyPeg mechanismOvercollateralized crypto + RWATransparency9/10Regulation6/10Depeg history8/10

Full review

Tether (USDT)

Best forHigh-liquidity trading on non-US venues where regulatory posture is less important than accepted-pair depth.

Overall

7.0

Score breakdown

Supply

10.0

Transparency

5.0

Regulation

4.0

Collateral quality

7.0

Depeg history

7.0

Adoption

10.0

+Why these scores

Supply · 10.0/10: Circulating supply of $184.15B — top-tier stablecoin by adoption. Widely accepted across CEXs and DeFi.
Transparency · 5.0/10: Attestations (not full audits) published quarterly by BDO. Reserve composition disclosed at high level. Not audited by a Big Four firm. History of vague reserve claims until 2019 NYAG settlement forced better disclosure.
Regulation · 4.0/10: El Salvador-registered. No US federal registration. Multiple regulatory actions historically (NYAG settlement 2019, CFTC settlement 2021). Not compliant with EU MiCA — European exchanges have delisted USDT for EU users.
Collateral quality · 7.0/10: Reserves majority in US Treasuries per attestations. Some exposure to secured loans and Bitcoin (~7% reserves 2024). Higher risk profile than pure Treasury-backed stablecoins.
Depeg history · 7.0/10: Occasional brief depegs (2018 to $0.85 briefly, May 2022 to $0.95 during Terra collapse) but always recovered. No sustained failure.
Adoption · 10.0/10: Top-3 stablecoin by supply — used as base currency across virtually every CEX and DEX.

▲ Pros

Supply (10/10): Circulating supply of $184.15B — top-tier stablecoin by adoption
Adoption (10/10): Top-3 stablecoin by supply — used as base currency across virtually every CEX and DEX

▼ Cons

Transparency (5/10): Attestations (not full audits) published quarterly by BDO
Regulation (4/10 — major concern): El Salvador-registered
Collateral quality (7/10 — noticeable weakness): Reserves majority in US Treasuries per attestations
Depeg history (7/10 — noticeable weakness): Occasional brief depegs (2018 to $0.85 briefly, May 2022 to $0.95 during Terra collapse) but always recovered

Circulating supply$184.15BIssuerTether LtdPeg mechanismFiat + Treasuries + secured loansTransparency5/10Regulation4/10Depeg history7/10

Full review

Ethena USDe

Best forUsers seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.

Overall

6.8

Score breakdown

Supply

6.0

Transparency

8.0

Regulation

4.0

Collateral quality

7.0

Depeg history

8.0

Adoption

8.0

+Why these scores

Supply · 6.0/10: Circulating supply of $4.04B — mid-tier adoption; not yet in the primary trading pairs on major venues.
Transparency · 8.0/10: Reserve composition and hedge positions transparent on-chain. Weekly attestation by third-party accounting firm. Custody arrangements documented.
Regulation · 4.0/10: BVI-incorporated. Limited jurisdictional registration. Novel mechanism (delta-neutral hedged stablecoin) not yet formally recognized under most stablecoin regulatory frameworks.
Collateral quality · 7.0/10: Backed by LSTs (stETH, etc.) with delta-neutral short perp hedge. Hedge collateral held in exchange OTC custody. Custody counterparty risk on major CEXs. Novel design with limited stress-test history.
Depeg history · 8.0/10: Launched 2024, no material depeg events yet. Design vulnerability: negative funding rate periods could compress backing. Not yet tested through a sustained bear-market funding regime.
Adoption · 8.0/10: Top-5 stablecoin — broadly accepted across major venues.

▲ Pros

Transparency (8/10): Reserve composition and hedge positions transparent on-chain
Depeg history (8/10): Launched 2024, no material depeg events yet
Adoption (8/10): Top-5 stablecoin — broadly accepted across major venues

▼ Cons

Supply (6/10): Circulating supply of $4.04B — mid-tier adoption; not yet in the primary trading pairs on major venues
Regulation (4/10 — major concern): BVI-incorporated
Collateral quality (7/10 — noticeable weakness): Backed by LSTs (stETH, etc.) with delta-neutral short perp hedge. Hedge collateral held in exchange OTC custody. Custody counterparty risk on major CEXs. Novel design with limited stress-test history

Circulating supply$4.04BIssuerEthena LabsPeg mechanismDelta-neutral perp hedge + LSTsTransparency8/10Regulation4/10Depeg history8/10

Full review

Methodology

How we rate best stablecoins — july 2026

What are stablecoins?

Top-scored stablecoins in July 2026

The three highest-scoring stablecoins on our composite methodology this month:

1. USD Coin (USDC) — 9.50/10

US and EU users who need a fully-compliant stablecoin with the strongest regulatory posture and full public audit trail.

2. USDS (Sky) — 8.25/10

Users seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.

3. PayPal USD — 8.25/10

US and EU users who need a fully-compliant stablecoin with the strongest regulatory posture and full public audit trail.

How to choose the right stablecoin

For maximum transparency + regulatory certainty in US/EU, USDC is the default (Circle is SEC-registered public company, MiCA-compliant in EU). For maximum liquidity across all trading venues globally, USDT is the default (deepest DEX/CEX pools). For decentralization + on-chain transparency, DAI or USDS. For yield-bearing exposure, USDe.

What can go wrong

Stablecoin failures have cost users billions — TerraUSD (UST) collapsed from $18B to zero in May 2022, taking $60B+ in ecosystem value. Even fully-backed stablecoins can depeg during stress (USDC to $0.87 during SVB crisis, March 2023). Diversify across issuers rather than concentrating in one; hold your primary stablecoin position in the most transparent + regulated option available.

How we score stablecoins

Stablecoins are scored on six criteria heavily weighted toward safety: transparency (20%), collateral quality (20%), regulation (15%), depeg history (15%) — together 70%. Supply scale (20%) and adoption (10%) come from DefiLlama; the other four criteria come from our editorial lookup reviewed quarterly.

The criteria

Transparency (weight: 20%)

Audit posture: Big Four full audit > attestation > opaque. Source: Editorial lookup.

Collateral quality (weight: 20%)

Cash + Treasuries > commercial paper > crypto > algorithmic. Source: Editorial lookup.

Supply (weight: 20%)

Circulating supply percentile. Source: DefiLlama /stablecoins.

Regulation (weight: 15%)

US + EU registration and licensing. Source: Editorial lookup.

Depeg history (weight: 15%)

Historical peg deviations and recovery. Source: Editorial lookup.

Adoption (weight: 10%)

Top-N ranking by supply. Source: DefiLlama.

Update cadence

Supply and adoption refresh monthly; editorial criteria reviewed quarterly.

Related rankings on Crypto Compass News

FAQ

Frequently asked

What is the best stablecoin in 2026?

Our current top-scored stablecoin is [USD Coin (USDC)](/reviews/usdc-stablecoin/) at 9.50/10 on our composite methodology. Runner-ups: [USDS (Sky)](/reviews/usds-stablecoin/) at 8.25/10 and [PayPal USD](/reviews/pyusd-stablecoin/) at 8.25/10. See the ranking above for per-criterion scores.

How are stablecoins ranked on this page?

Every entry is scored on 6 criteria: transparency (20%), collateral quality (20%), supply (20%), regulation (15%), depeg history (15%), adoption (10%). All criteria are computed from public data sources — no manual reordering, no affiliate influence. The composite is a weighted average of all criteria, capped at 10.

Are these stablecoins rankings influenced by affiliate deals?

No. Every score is computed from published data. No entry can pay for placement; external links are informational and we do not receive commission for any placement.

How often is this stablecoins ranking updated?

Supply and adoption refresh monthly; editorial criteria reviewed quarterly.

What is the safest stablecoin?

On our composite methodology (weighting transparency + collateral quality + regulation heavily), the top-scored stablecoin is [USD Coin (USDC)](/reviews/usdc-stablecoin/) at 9.50/10. [USDC](/reviews/usdc-stablecoin/) and [PYUSD](/reviews/pyusd-stablecoin/) score highest on regulation + transparency (both fully-backed by cash + US Treasuries with monthly attestations from Big Four auditors).

What is the difference between USDT and USDC?

Both are dollar-pegged stablecoins targeting $1. [USDC](/reviews/usdc-stablecoin/) is issued by Circle — a US-based public company (NYSE: CRCL) with quarterly SEC filings, monthly Deloitte attestations, and full MiCA compliance in the EU. [USDT](/reviews/usdt-stablecoin/) is issued by Tether Ltd — El Salvador-registered, quarterly BDO attestations (not full audits), largest supply globally. USDT has deeper liquidity on most CEXs; USDC has more transparent backing.

Can stablecoins depeg?

Yes, and multiple have. Recent examples: USDC to $0.87 during Silicon Valley Bank crisis (March 2023, recovered in 3 days); USDT to $0.95 during Terra collapse (May 2022, brief recovery). TerraUSD collapsed permanently from $1 to near-zero in May 2022. Depeg risk is one of six criteria in our stablecoin ranking — see individual reviews for per-stablecoin depeg history.

Are stablecoins insured?

Not typically. Some issuer reserves are held in FDIC-insured US bank accounts (USDC does this), but the stablecoin itself isn't insured — if the issuer fails, holders become creditors in bankruptcy. Some DeFi insurance protocols (Nexus Mutual) offer stablecoin depeg coverage at 2-5% APR. For safety, distribute holdings across multiple stablecoin issuers rather than concentrating.

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DAI

Best forUsers seeking a middle-ground between purely-fiat-backed stablecoins and higher-yield alternatives.

Overall

7.7

Score breakdown

Supply

7.0

Transparency

9.0

Regulation

6.0

Collateral quality

8.0

Depeg history

8.0

Adoption

8.0

+Why these scores

Supply · 7.0/10: Circulating supply of $4.85B — well-established stablecoin with meaningful market presence.
Transparency · 9.0/10: MakerDAO's vault positions and collateral are fully on-chain and publicly auditable in real-time. Reserve composition (crypto vs RWA vs T-bills) transparent via Dune dashboards. DAO governance decisions are open.
Regulation · 6.0/10: MakerDAO operates as a decentralized autonomous organization — no central issuer to license or regulate. RWA collateral (US Treasuries via Monetalis, BlockTower) creates indirect regulatory touch. Not explicitly permitted or prohibited in most jurisdictions.
Collateral quality · 8.0/10: Mixed collateral: ETH, WBTC, USDC (30-50% historically), and RWA (US Treasuries). Overcollateralization ratio typically 150%+ across the system. Some concentration risk in USDC dependency.
Depeg history · 8.0/10: March 2020 Black Thursday event caused temporary liquidation shortfalls but DAI held peg via emergency measures. Minor depegs during high volatility events; always recovered within days.
Adoption · 8.0/10: Top-5 stablecoin — broadly accepted across major venues.

▲ Pros

Transparency (9/10): MakerDAO's vault positions and collateral are fully on-chain and publicly auditable in real-time
Collateral quality (8/10): Mixed collateral: ETH, WBTC, USDC (30-50% historically), and RWA (US Treasuries)
Depeg history (8/10): March 2020 Black Thursday event caused temporary liquidation shortfalls but DAI held peg via emergency measures
Adoption (8/10): Top-5 stablecoin — broadly accepted across major venues

▼ Cons

Supply (7/10 — noticeable weakness): Circulating supply of $4.85B — well-established stablecoin with meaningful market presence
Regulation (6/10): MakerDAO operates as a decentralized autonomous organization — no central issuer to license or regulate

Circulating supply$4.85BIssuerMakerDAO / SkyPeg mechanismOvercollateralized crypto + RWATransparency9/10Regulation6/10Depeg history8/10

Full review