New stablecoins competing with Tether and USD Coin

Some new stablecoins have even managed to surpass major players in the stablecoin segment and make it to the list of top tokens in this category.

1. Ethena USDe (USDe)

The USDe token is a stablecoin with an innovative model of securing the peg to the US dollar, launched in early 2024 on the Ethereum blockchain. The altcoin USDe was issued based on the Ethena protocol, which was specially developed for issuing so-called synthetic stablecoins.

The peg of Ethena USDe to the US dollar is secured through decentralized mechanisms: the protocol uses a delta-hedging method for DeFi positions, which reduces the risks arising from the volatility of collateral assets.

Bitcoin (BTC) and Ethereum (ETH) are used as collateral. Users can deposit BTC and ETH via the Ethena protocol, which will be locked up to issue USDe tokens.

Thanks to its innovative approach and the absence of centralized mechanisms that prevent the issuance of the stablecoin for users, the Ethena protocol has become very popular in the cryptocurrency market, and its token, USDe, has entered the top three leading stablecoins after Tether (USDT) and USD Coin (USDC).

As of July 2025, the market capitalization of USDe is $5.3 billion. In less than a year, this figure has more than doubled, indicating the high popularity of USDe among users.

2. World Liberty Financial USD (USD1)

USD1 is a new stablecoin launched by the World Liberty Financial project in April 2025. Almost immediately after its launch, World Liberty Financial USD gained popularity and entered the list of leading stablecoins on the cryptocurrency market.

The USD1 stablecoin was developed in response to the regulatory requirements of the US market, including the new GENIUS and Stable Act bills. The reserves of the stablecoin are held in highly liquid assets, including US Treasury bonds and money market funds, and are fully transparent, ensuring compliance with regulatory requirements.

The World Liberty Financial project was founded in 2024 and is closely connected to the family of the current US President, Donald Trump.

The platform provides DeFi tools for investors to manage digital assets, with USD1 playing a central role in the World Liberty Financial ecosystem. The USD1 stablecoin is integrated into the decentralized finance sector to attract more liquidity to the World Liberty Financial project.

With a market capitalization of $2.2 billion, World Liberty Financial USD entered the top five leading stablecoins as of June 2025. Just a month after its launch, the market capitalization of USD 1 grew more than 17 times.

3. First Digital USD (FDUSD)

The First Digital USD stablecoin was launched in June 2023 by the Hong Kong-based company FD121 Limited. FDUSD was created by international regulatory requirements to ensure the legal safety of its holders. Initially issued on the Ethereum blockchain, FDUSD is also available on the BNB Chain, Solana, and Sui ecosystems.

First Digital USD replaced Binance USD (BUSD), which was removed from the Binance platform due to regulatory issues. FDUSD, like BUSD, was issued by Paxos.

As of July 2025, FDUSD is ranked 6th among stablecoins pegged to the US dollar, placing 56th overall in the CoinMarketCap ranking. The market capitalization of FDUSD is $1.46 billion, but this figure has declined more than twice over the past year. This is due to both competition and the rise of volatile cryptocurrencies like Bitcoin and Ethereum, as investors move their assets into these assets.

4. PayPal USD (PYUSD)

PYUSD is a stablecoin pegged to the US dollar, released by the well-known international payment system PayPal in August 2023 in partnership with the Paxos issuer. PayPal became the first traditional payment system to launch its stablecoin.

Fiat currencies back the PayPal USD stablecoin, which is a centralized stablecoin, similar to USDT or USDC. PayPal USD was created to add support for digital asset transfers.

Additionally, PayPal USD is used as a medium of exchange in the payment system's services. PayPal supports the exchange of cryptocurrencies, including Bitcoin and Ethereum. Users of the payment system can convert PYUSD into BTC or ETH and vice versa.

Over the past year, the market capitalization of PayPal USD has increased almost threefold, reaching nearly $900 million. In terms of this metric, PYUSD is among the top ten leading stablecoins in the cryptocurrency market and is ranked 76th in the overall CoinMarketCap ranking.

5. Usual USD (USD0)

The USUAL project launched the USD0 stablecoin in November 2024. The unique feature of the Usual USD stablecoin is its reserves, which are backed by tokenized real-world assets (RWAs), such as US Treasury bonds.

Usual represents a multi-chain infrastructure for issuing decentralized stablecoins.

Additionally, the Usual USD stablecoin supports multi-level collateral. In other words, the mechanism for maintaining the stability of the peg to the US dollar works through both fiat reserves and income-generating DeFi strategies. For example, USD0 was integrated into the second-layer network (Layer-2 or L2) zkSync as a native stablecoin.

In December 2024, the market capitalization of USD0 surged to $1.7 billion; however, as of June 2025, it had decreased to $629 million. Despite this, the Usual USD remains in the top ten leading stablecoins by market capitalization.