A stablecoin is a crypto token designed to keep a steady price, usually one US dollar, by being backed by reserves or by other assets. Tether’s USDT and Circle’s USDC are the largest. On 10 November 2026 DefiLlama counted about $292 billion of dollar stablecoins in circulation, of which USDT was about 60% and USDC about 24%. The peg isn’t guaranteed: it depends on what backs the coin and on the issuer being able to pay out.
The four kinds of stablecoin
| Kind | How it holds its price | Examples, in circulation on 10 November 2026 |
|---|---|---|
| Backed by cash and bonds | An issuer holds reserves such as cash and short-term government debt, and redeems tokens for dollars | USDT about $176.2 billion, USDC about $70.4 billion, PayPal USD about $2.7 billion |
| Backed by crypto | Crypto held as collateral in smart contracts, rather than money in a bank | Sky Dollar (USDS) about $5.4 billion, DAI about $4.7 billion |
| Synthetic | Crypto holdings are paired with short futures positions so that price moves cancel out | Ethena USDe, about $5.0 billion |
| Algorithmic | A mechanism or a second token meant to pull the price back to $1, rather than full reserves | TerraUSD (UST), which collapsed in May 2022 |
How a reserve-backed stablecoin keeps $1
The issuer sells new tokens for dollars and buys them back for dollars, so if the price drifts below $1, traders can buy cheap tokens and redeem them at par. That only works if the reserves are really there and can be paid out quickly.
- USDT: Tether says USDT is backed 100% by its reserves. Our guide to what USDT is covers its reserves, networks and risks.
- USDC: Circle says its reserves are held in cash and a government money market fund, publishes them weekly, and has a Big Four accounting firm provide monthly assurance. See USDC at casinos.
Crypto-backed and synthetic coins have no bank account behind them. They depend on their collateral holding its value, and on the code and, for synthetic coins, the exchanges that hold the hedges. Ethena’s documentation describes USDe’s backing as spot assets offset by short futures, a “delta-neutral” position.
When stablecoins lost their peg
- TerraUSD, May 2022. UST, marketed as an “algorithmic stablecoin”, lost its peg and fell to near zero with Terraform’s other tokens, wiping out about $40 billion in market value, according to the US Securities and Exchange Commission. A jury found Terraform and its founder had misled investors about UST’s stability, and in June 2024 they agreed to pay more than $4.5 billion.
- USDT, May 2022. In the same market panic USDT briefly traded below $1 before recovering.
- USDC, March 2023. When Silicon Valley Bank failed holding $3.3 billion of Circle’s reserves, USDC fell below 87 cents before recovering.
The reserve-backed coins recovered; the algorithmic one didn’t. That’s the clearest sign of what “stable” rests on.
How stablecoins are regulated
- European Union. The MiCA regulation, Regulation (EU) 2023/1114, sorts stablecoins into tokens that reference one official currency, such as the dollar or the euro, and tokens that reference other assets or baskets. On 8 October 2026 the EU’s markets regulator, ESMA, said authorised providers should stop services for stablecoins that don’t comply. That’s why many EU exchanges restrict USDT and list USDC.
- United States. The GENIUS Act, which the White House says was signed into law on 18 July 2025, provides for the regulation of payment stablecoins.
This is general information, not legal advice; the rules that apply to you depend on where you live.
Why crypto casinos use stablecoins
A balance in USDT or USDC stays at about $1 per coin while you play, so your bankroll doesn’t swing with Bitcoin’s price. Transfers can cost a fraction of a cent on networks such as BNB Chain, Polygon and Solana, according to our deposit cost index. The coin doesn’t make a casino safer, though: once you deposit, the casino holds your balance. See USDC vs USDT to choose between the two, and our USDT casinos compared for licences checked on the regulator’s register.
FAQ
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Checked November 2026. Sources: DefiLlama stablecoins (circulation read 10 November 2026) · Tether transparency · Circle transparency · Ethena: how USDe works · SEC, 13 June 2024 · CoinDesk, 12 May 2022 · CNBC, 11 March 2023 · MiCA, Regulation (EU) 2023/1114 · ESMA, 8 October 2026 · White House, 18 July 2025.