USDT, USDC and friends: the tier list

Sep 26, 2026 5 min read

A dollar coin resting on a stack of reserves, the backing that holds a stablecoin at a dollar.

Kairo

Not all stablecoins are built the same. Some are backed by cash. Some are backed by vibes. Here's how to tell them apart before you hold one.

Three ways to keep a coin at $1

Type	How it stays stable	Vibe
Fiat-backed	Issuer holds real dollars and treasuries, audited	The sensible one. Most volume lives here.
Crypto-backed	Over-collateralised with other crypto, managed by code	Clever, transparent, more moving parts.
Algorithmic	Code tries to balance supply and demand with no real backing	Historically catastrophic. See: 2022.

A dollar coin wired to a stack of reserves, the backing behind a fiat-backed stablecoin.

The tier list (fiat-backed edition)

S tier: the two biggest coins by a mile. Both are dollar-backed, both publish reserve reports, both are accepted basically everywhere. One is more popular in emerging markets and trading; the other leans harder into regulation and transparency and is the darling of fintechs and institutions. Holding either is fine. Holding both is a flex.

A tier: regulated euro and pound stablecoins, and newer dollar coins from big-name finance and payments companies. Solid backing, smaller networks, so sometimes harder to spend or swap.

B tier: exchange-branded coins and regional ones. Fine on their home turf, awkward elsewhere.

Do not: anything promising a "stable" 20% yield with no explanation of where the yield comes from. That is not a stablecoin. That is a countdown.

How to check a coin in 60 seconds

Who issues it, and are they regulated somewhere real?
Do they publish reserve reports, and how often?
What's in the reserves: cash and treasuries (good) or "other assets" (ask questions)?
Can you redeem it for real dollars, and who can?
How much of it is out there? Size is not safety, but tiny coins die quietly.

Which chain does it live on?

The same coin exists on several blockchains. Same dollar, different postcode. Sending to the wrong network is the number one way people lose stablecoins. Good apps hide this entirely by letting you send to a handle instead; that's the whole point of a Kaitag.

TL;DR Stick to big, audited, fiat-backed coins. Ignore anything with "algorithmic" in the bio. Never send to the wrong chain; better yet, send to a name.