📰 Just Good to Know
Key differences between gold-backed and USD-backed stablecoins
💲 Some of USD-backed: USDT, USDC, DAI (partially).
⭐️ Some of gold-backed: PAXG, XAUT, DGX.
• Collateral: Gold-backed stablecoins are tied to physical gold; USD-backed ones are pegged to US dollars or cash equivalents.
• Stability: Gold-backed stablecoins fluctuate with gold prices; USD-backed ones aim for a steady 1:1 dollar peg but can depeg.
• Liquidity: USD-backed stablecoins are more liquid and widely used in trading, payments, and DeFi; gold-backed ones have lower liquidity.
• Adoption: USD-backed stablecoins (e.g., USDT, USDC) dominate crypto ecosystems; gold-backed ones are niche but growing.
• Use Cases: Gold-backed stablecoins suit inflation hedging; USD-backed ones are ideal for transactions and financial services.
• Regulation: USD-backed stablecoins face stricter US regulations; gold-backed ones have fewer regulatory frameworks.
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