After Tether changed the rules, which Stablecoin can you choose to replace USDT?
March 15 in its updated introduction of the US dollar-pegged stablecoin USDT, the issuer Tether said USDT’s underlying reserves may sometimes include assets beyond traditional U.S. dollar funds.
The update, noticed by a keen-eyed redditor, appears to contradict Tether’s claim that its USDT coin is backed 100 percent by the US dollar. Tether now states that, while it fully backs every USDT token, these may not always be backed by US currency. Instead, Tether told its customers that its USDT coins are backed by “reserves” that “include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, ‘reserves’).”
Actually, Tether had no evidence all the time that every USDT is backed by 1USD. But people don’t have another choice in the past. Things have been changed today. Several rival stablecoins have arrived on the market, including Circle’s USD Coin (USDC), the Paxos Standard Token (PAX) and the Gemini Dollar (GUSD). Older rivals include TrustToken’s TrueUSD (TUSD) and Maker’s Dai (DAI).
In addition, lots of financing institutions including payment platforms and banks issue their own Stablecoin aim at providing cross-border payments solution. Those Stablecoins, in my opinion, are the real stable coins. Because they have a practical application scenario to support value.
For example the stablecoin EUSD. It is issued by Epay Global Limited based on ERC20 standard, the platform generates 1 EUSD for every dollar deposited and destroys 1 EUSD for every dollar withdrawn. It can be exchanged to USD at a 1:1 fixed rate on the Epay platform, and directly used in Epay Global Remittance Network to act as a transaction medium between the remittance agencies.
It’s still too early to say which competitor is best positioned to win long term. but can’t deny that the competition from its many rivals is heating up.