Stablecoins give investors the experience of both the traditional and crypto worlds by offering stability via fiat money backing, plus the ability to quickly transfer funds on blockchain networks.

Tether

USDT

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$1.00

, USD Coin

USDC

$1.00

and Binance USD (BUSD) are some of the known stablecoins in the crypto space. All three stablecoins are backed 1:1 by their respective reserve currencies, giving them value stability. However, there are a few key differences between them. This article will explore the similarities and differences between USDT, USDC and BUSD.

What are stablecoins?

Stablecoins are cryptocurrency assets whose value is pegged to that of a stable asset, such as fiat money or gold. Fiat-backed stablecoins are often pegged to the value of the United States dollar at a 1:1 ratio.

As mentioned, stablecoins provide users with the convenience of fast, inexpensive and secure transactions via blockchain without having to deal with the limitations of traditional financial systems.

As their name suggests, stablecoins provide stability and considerably less volatility than other crypto assets such as Bitcoin

BTC

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$27,274

and Ether

ETH

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$1,566

. The benefits of stablecoins include: