Stablecoins have emerged as one of the most important transformational drivers in global finance. As of Sept 2025, the total market capitalization of stablecoin has reached about $295 billion, marking the 23rd consecutive month of growth.
This is not simply a story about crypto but is a macro shift driven by institutional partnership & adoption, evolving regulation, and a new definition of liquidity.
The article covers the top 5 stablecoins that one should consider for the year 2025.
Table of Contents
1. Tether (USDT)
- Market Cap: 172.13B
- Circulating Supply: 172.01B USDT
USDT was launched back in 2014 by Tether Limited to serve as the digital dollar for the internet. Tether is the largest stablecoin and has a market capitalization 2.33 times larger than the second-largest stablecoin, USDC.
Tether operates primarily on the Ethereum (ERC-20), Tron (TRC-20), and other blockchains; it is pegged 1:1 to the USD, backed by real reserves that spread across traditional financial markets. Even with all the challenges, like improper management of reserves, the stablecoin continues to dominate the category.
Why to consider:
USDT offers high liquidity, making it a widely accepted stablecoin with stability, and primarily fulfills the requirement for trading, settlements, and DeFi.
2. USD Coin (USDC)
- Market Cap: $73.91B
- Circulating Supply: 73.94B USDC
USDC was introduced by Coinbase and Circle in 2018 via the Institute Consortium. The coin ranks second in terms of market capitalization for the stablecoin category. Renowned accounting firms constantly assess it and verify the reserves to ensure the asset’s steady and stable value over the time period.
USD Coin is built on Ethereum, Solana, Algorand, and other blockchains; it is pegged to the USD and fully backed by cash and short-term U.S. Treasury assets.
As “digital money for the digital age,” USDC was created to facilitate simple cashless transactions across wallets, exchanges, and dApps (apps that use blockchain technology).
Why to consider:
The confidence formed in USDC is primarily due to regulatory compliance and the transparency it offers. All the offerings from the stablecoin make it secure, resulting in its wider adoption across the crypto ecosystem.
3. USDS
- Market Cap: $8.21B
- Circulating Supply: 8.22B USDS
USDS launched on September 18, 2024, and operates on a decentralized finance (DeFi) model and is the stablecoin of Sky Protocol.
The upgraded version boosts stability and scalability and provides more functionality for the entire ecosystem. The stablecoin is pegged to the U.S. dollar and makes use of smart contracts, ultimately restricting participation of centralized entities.
Users can acquire the stablecoin by trading it on decentralized exchanges, converting DAI at a 1:1 ratio, or minting USDS via collateral.
Why to consider:
The USDS implements the same trusted stablecoin structure as DAI and has yield backed by real-world assets (RWA) in a regulatory-compliant way so that it leans toward being safer, more rewarding, and easier for DeFi users and institutions to onboard.
4. Ethena USDe (USDE)
- Market Cap: $14.29B
- Circulating Supply: 14.27B USDe
Ethena, a DeFi protocol that has begun to establish a leading position in the crypto stablecoin space with its synthetic dollar, USDe. The stablecoin was made public on February 19, 2024.
Unlike other stablecoins such as Tether and USDC that are supported by actual dollars or underlying assets held by centralized custodians, Ethena uses a flexible mix of backing by crypto assets and financial instruments to maintain a peg to the U.S. dollar using a delta-neutral strategy.
Why to consider:
USDe’s unique delta-neutral approach and Ethereum-led design offer a unique proposition and security that is transparent and high-yield for users globally.
5. First Digital USD (FDUSD)
- Market Cap: $1.15B
- Circulating Supply: 1.15B FDUSD
The First Digital USD (FDUSD) is a stablecoin launched back in 2023 by an established trust company in Hong Kong, First Digital Trust Limited. The coin now continues to serve the primary purpose of maintaining a stable bridge to the global financial system.
FDUSD is built natively into six blockchains to enable instant payment processing, decentralized finance activity, and programmable financial instrument capabilities.
It is backed by cash and cash equivalent assets to the U.S. dollar at a ratio of 1:1, with its reserve assets being held as accounts by third-party, regulated Asian entities.
Why to consider:
FDUSD is a safe, regulated, and adaptable stablecoin that could be utilized for making cross-border payments and utilizing in decentralized finance. The stablecoin continues to maintain a stable bridge between traditional finance and the growing digital economy.
What are stablecoins?
Stablecoins are intended to maintain their value over time. These are digital assets that can be utilized to make the digital payments in the crypto space and tend to be less volatile than crypto assets like Bitcoin and Ethereum. The stablecoins can be used for either buying or selling crypto assets or utilizing them for making payments across a country’s border (known as ‘cross-border payments’).
