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The 3 best stablecoins to use in 2022 after the collapse of TerraUSD (UST)


Since its creation, theUSD Coin (USDC) has always surfed the wave of security and transparency. This is explained by the fact that it was created by the American company Circle with the support of major investors like BlackRock and Fidelity. It also publishes monthly updates on its reserves, showing that it holds reserves in cash and US Treasuries.

No wonder, then, that USDC is the second most popular stablecoin and the fourth cryptocurrency by market capitalization. Furthermore, holding and staking USDC tokens yields around 6.18% annualized return, which makes it useful not only as a cryptocurrency but also as an investment.

Binance USD (BUSD)

Like the USDC, the BinanceUSD (BUSD) has the advantage of being backed by a strong and reliable base. All of its reserves are held by Paxos Trust, a US-regulated company, and the stablecoin has even been approved by the New York State Department of Financial Services (NYDFS).

Holders of the token can earn up to 5% interest. You can enjoy free transfers through the Binance exchange. Given the trust in BUSD and its use in the Binance ecosystem, this is another stablecoin you can use with confidence.

Tether (USDT)

As the #1 stablecoin and #3 cryptocurrency by market cap, all eyes were on Tether after the UST collapse. Fortunately, Tether passed this test primarily because users’ faith in the token remained throughout the storm. This confidence was due to Tether’s increasing transparency regarding its reserves.

These reserves are held in cash and assets such as precious metals, corporate bonds and US Treasury bills. Over the past year, Tether has also reduced its reliance on treasury notes from China and other Asian countries. Commercial papers are a risky form of investment, but Tether presented documents showing that these now represent only a small part of its reserves.

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Be vigilant and consult your financial adviser before making any investment decision. Mirror-Mag cannot be held responsible in the event of bad investments. Before using any third-party service, you should do your own research.

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