Unlike traditional cryptocurrencies like Bitcoin or Ethereum, stablecoins are linked to an existing asset, like US dollars, euros, or even gold. Stablecoins typically achieve their stability through the backing of a central authority — such as a private company or non-profit organization. It’s easy to see why early adopters of this ecosystem are inherently distrustful of centralized stablecoins such as Tether. While other stablecoins may maintain a 1:1 parity with underlying assets, Dai requires higher deposits than the amount it issues. True USD (TUSD) True USD was one of the first stablecoins to try and achieve regulatory compliance.
