The safety of stablecoins depends on the issuer and the backing mechanism. Well-regulated stablecoins with transparent reserves are among the safest digital assets available.
What Makes a Stablecoin Safe?
A stablecoin's safety comes from three key factors: the quality of its reserves, the transparency of its audits, and the regulatory oversight of its issuer.
Reserve Quality
Best stablecoins hold cash and short-term Treasury bonds, not risky assets.
Audit Transparency
Regular third-party attestations verify that reserves match circulating supply.
Regulatory Oversight
Licensed issuers must comply with financial regulations and consumer protections.
Stablecoin Safety Tiers
USDC by Circle: Monthly attestations by Deloitte, reserves in US Treasury bonds and cash, regulated in the US
EURC by Circle: Same rigorous backing as USDC, Euro-denominated
XSGD by StraitsX: Licensed by MAS (Monetary Authority of Singapore)
USDT (Tether): Largest by market cap, quarterly attestations, reserves include commercial paper and other assets
DAI: Crypto-collateralized, decentralized, algorithmic stability
Algorithmic stablecoins: No real reserves, rely on complex mechanisms (e.g., UST/Luna collapse)
Unknown issuers: No audits, unclear jurisdiction, no redemption guarantees
Can Stablecoins Lose Their Peg?
Yes, but it's rare for well-backed stablecoins. Here's what can cause depegging:
| Event | Risk Level | Example |
|---|---|---|
| Market panic/bank run | Medium | USDC briefly depegged during SVB collapse (recovered within days) |
| Reserve mismanagement | Medium | Tether faced questions about reserve composition (still operating) |
| Algorithmic failure | High | UST/Luna collapsed completely in 2022 |
| Regulatory action | Low-Medium | BUSD discontinued after regulatory pressure |
Historical Stability
USDC has maintained its $1.00 peg since launch in 2018, with only brief deviations during extreme market events that were quickly corrected. USDT has operated since 2014 and processed trillions in volume while maintaining its peg.
What to Look For
When choosing a stablecoin, verify:
Regular third-party audits/attestations
Monthly is best
Regulated issuer
Clear legal jurisdiction and licenses
Transparent reserve composition
Published breakdown of assets
Redemption guarantees
Ability to convert back to fiat
Track record
Years of operation without major incidents
Moneta's Approach
Moneta and the Sera Protocol only support stablecoins from regulated issuers with transparent reserves. The protocol automatically routes through the most liquid and stable options, minimizing risk for both merchants and customers.
Self-Custody Protection
With Moneta, your funds go directly to your own wallet. Even if a stablecoin issuer faced problems, you control your assets and can convert to other stablecoins or fiat at any time.
Ready to Accept Stablecoin Payments?
Start accepting payments with established, safe stablecoins today.