Top 10 Fiat-Backed Stablecoins by Market Capitalization (2025)
Stablecoins are a foundational part of the crypto economy. While the broader crypto market is known for volatility, stablecoins offer price predictability, typically pegged 1:1 to fiat currencies like the U.S. dollar. This makes them essential for trading, payments, and decentralized finance (DeFi).
In this post, we focus specifically on fiat-backed stablecoins – those backed by actual reserves held in banks or trusted custodians, excluding algorithmic or crypto-collateralized options like DAI or FRAX.
Whether you’re a trader, DeFi user, or just trying to avoid volatility, understanding the leading stablecoins can help you navigate the ecosystem more confidently.
What Are Fiat-Backed Stablecoins?
Fiat-backed stablecoins maintain their peg through direct reserves – typically U.S. dollars or equivalents – held in traditional financial institutions. Each token issued is meant to be fully backed by $1 in assets, allowing users to convert back and forth with confidence.
Key benefits:
- Price stability
- Liquidity on exchanges
- Integration with DeFi protocols and payment rails
Let’s look at the top 10 fiat-backed stablecoins by market cap as of 2025.
Top 10 Fiat-Backed Stablecoins
1. Tether (USDT)
- Market Cap: $100B+
- Chain Support: Ethereum, Tron, Solana, Avalanche, others
- Issuer: Tether Ltd.
- Overview: The dominant stablecoin since 2015. USDT has broad adoption but has faced ongoing scrutiny over the transparency of its reserves. Still, it remains the most widely used stablecoin globally.
2. USD Coin (USDC)
- Market Cap: ~$35B
- Chain Support: Ethereum, Solana, Avalanche, Base, others
- Issuer: Circle (with partnerships like Coinbase)
- Overview: USDC is known for its regulatory compliance and transparency, with monthly attestations of reserves. It’s favored by many DeFi protocols and institutions.
3. PayPal USD (PYUSD)
- Market Cap: ~$2B
- Chain Support: Ethereum
- Issuer: Paxos in partnership with PayPal
- Overview: A newcomer backed by one of the world’s largest payment companies. PYUSD is positioned for mainstream adoption, offering seamless movement between crypto and traditional payments.
4. TrueUSD (TUSD)
- Market Cap: ~$1.8B
- Chain Support: Ethereum, BNB Smart Chain, Tron
- Issuer: Archblock
- Overview: One of the earliest regulated USD-backed stablecoins. TUSD uses real-time reserve attestations to build user trust.
5. First Digital USD (FDUSD)
- Market Cap: ~$1.6B
- Chain Support: Ethereum, BNB Smart Chain
- Issuer: First Digital Trust
- Overview: A newer but fast-growing stablecoin. FDUSD is gaining traction, particularly on Binance, due to strong liquidity incentives and a focus on transparency.
6. Gemini Dollar (GUSD)
- Market Cap: ~$450M
- Chain Support: Ethereum
- Issuer: Gemini Trust Company
- Overview: Regulated in New York, GUSD is one of the most compliant stablecoins. It offers FDIC insurance (via partner banks) on fiat deposits held in reserve.
7. Stably USD (USDS)
- Market Cap: ~$100M+
- Chain Support: Ethereum, Stellar, Harmony
- Issuer: Stably
- Overview: A fiat-backed stablecoin focusing on interoperability across blockchains and easy fiat onboarding. Also supports B2B APIs for fintech integration.
8. Binance USD (BUSD)
- Market Cap: Declining (~$75M)*
- Chain Support: Ethereum, BNB Smart Chain
- Issuer: Formerly Paxos
- Overview: BUSD was once a top-three stablecoin, but regulatory pressure in the U.S. led Paxos to halt issuance in 2023. Still circulating but no longer growing.
9. USDP (Pax Dollar)
- Market Cap: ~$50M
- Chain Support: Ethereum
- Issuer: Paxos
- Overview: A fully regulated stablecoin with clear transparency and reserve reporting. Often overlooked due to smaller liquidity but trusted by institutions.
10. Tether EURt (EURT) (Euro-pegged)
- Market Cap: ~$40M
- Chain Support: Ethereum
- Issuer: Tether Ltd.
- Overview: While not USD-pegged, EURT is worth noting as one of the few fiat-backed Euro stablecoins with traction. Useful for euro-denominated transactions.
📊 Why Market Cap Matters
Market capitalization reflects adoption and trust. A higher market cap typically means:
- Better liquidity on exchanges
- Tighter peg stability
- More integrations with wallets, protocols, and services
However, market cap isn’t the whole story – it’s crucial to evaluate:
- Transparency of reserves
- Regulatory compliance
- Redeemability guarantees
- Third-party audits or attestations
Use Cases of Stablecoins
Stablecoins are the bridge between traditional and decentralized finance. Their most common uses include:
Trading
Hold value between trades without cashing out to fiat. Avoid volatility in a bear market.
DeFi Applications
Stablecoins are the base assets for lending, borrowing, yield farming, and liquidity provision across most DeFi protocols.
Payments & Remittances
Send value globally without the delay or fees of traditional bank wires. With dollar-backed stablecoins, it’s easier to transact in a global reserve currency – even in countries with volatile local currencies.
Risks and Considerations
Even fiat-backed stablecoins aren’t immune from concerns:
- Regulatory scrutiny (e.g. BUSD’s phase-out)
- Inadequate or unaudited reserves
- Centralized control or blacklisting features
Always research the issuer’s transparency, audit practices, and track record before holding significant value.
Fiat-backed stablecoins like USDT and USDC are integral to the digital asset economy. As crypto adoption grows, so does the importance of stable, trusted, liquid assets for users who want to hold value without volatility.
Whether you’re a DeFi power user or just looking for a low-volatility crypto option, these top 10 stablecoins represent the most established bridges between traditional money and the blockchain world.
