Stablecoins in 2026: Which to Choose — USDT, USDC or Others
A stablecoin is the crypto market's "digital dollar": traders keep their reserve in it and price their trades in it. But stablecoins work in different ways, and some have already lost their peg. We look at the types, their risks and how to choose.
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Up to date as of October 2026. Crypto rules change (in Kazakhstan and elsewhere): before you act, check the platform's licence in your regulator's register and the current tax rules.
What is a stablecoin
It's a token whose price stays close to one unit of a currency — usually $1. Short definition in our glossary: stablecoin, and the most popular one is covered in what is USDT. The main point: "stable" doesn't mean "risk-free". The peg holds as long as the market trusts the issuer's reserves.
Four types of stablecoin
| Type | How it holds the peg | Examples | Main risk |
|---|---|---|---|
| Fiat-backed | Reserves in dollars and government bonds | USDT, USDC | The issuer, the custodian bank, address freezes |
| Crypto-backed | Over-collateralised with crypto | DAI / USDS | A sharp fall in the collateral, smart contract bugs |
| Synthetic | Hedged futures positions | USDe | Negative funding, panic on exchanges |
| Algorithmic | Only an algorithm, no full reserve | UST (collapsed in 2022) | Losing all its value |
When stablecoins lost their peg
- UST, May 2022. Terra's algorithmic stablecoin went to zero in a few days — tens of billions of dollars vanished.
- USDC, March 2023. Part of its reserves sat in the failed bank SVB; over a weekend the price fell to about $0.87 and recovered a few days later.
- USDe, 10 October 2025. In a market crash, USDe fell to $0.65 on the spot market of one major exchange, even though on-chain it held around $1.
The takeaway: even a large stablecoin can temporarily slip, and on a single exchange it can slip further than the market average.
Regulation in 2026
- USA. The GENIUS Act was signed in July 2025 and is expected to take effect on 18 January 2027. It requires issuers to hold 1:1 reserves and bans them from paying interest to holders.
- European Union. Under MiCA rules, Tether did not get authorisation for USDT, and EU platforms removed it for European customers. USDC is issued in the EU under an e-money licence.
- Kazakhstan. Backed stablecoins are classed as digital financial assets. The tenge stablecoins KZTE and KZTg operate in the National Bank's regulatory sandbox, and a law on stablecoin payments is being prepared.
How to choose a stablecoin
- Reserves. The issuer regularly publishes reserve reports, ideally checked by an auditor.
- Liquidity. The pair trades on the licensed platform you use.
- Network. Pick a network with clear fees that both sides of the transfer support.
- More than one issuer. It makes sense to split a large reserve between two stablecoins.
- No "20% a year". A high interest rate on a stablecoin is a reason to be suspicious.
Where to buy USDT legally with tenge (Kazakhstan) is covered in how to buy USDT in Kazakhstan.
Example: a stablecoin as the base for a trade
Prices are illustrative. Account size: $2,000 in USDT, risk: 1%, i.e. $20.
| Parameter | Value |
|---|---|
| ETH entry | $4,000 |
| Stop-loss | $3,800 (−5%) — below the pullback low |
| Position size | $20 / $200 = 0.1 ETH, i.e. $400 |
| Take-profit | $4,400 (+10%), ratio 1:2 |
| Remainder | $1,600 in stablecoins; for a large reserve — split between two issuers |
After you exit the trade at the stop or the take-profit, the money goes back into the stablecoin. So stablecoin risk is a risk to your whole account, not just one trade. You can work out the trade in the risk/reward calculator, and where to start is covered in how to start trading crypto.
Common mistakes
- Sending on the wrong network — for example, sending via one network to an address that expects another.
- Your whole reserve in one stablecoin on one exchange.
- Buying an unknown "stablecoin" on a DEX — it may be a fake with the same ticker.
- P2P trades with random people paying to personal cards — risk of frozen accounts and "dirty" money.
What you are risking
Loss of the peg, problems at the issuer or its bank, an address being frozen at the authorities' request, smart contract hacks for crypto-backed and synthetic stablecoins, and sending on the wrong network. A stablecoin is not insured like a bank deposit, and its price is not guaranteed.
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- Stablecoins differ: fiat-backed, crypto-backed, synthetic and algorithmic.
- Choose by reserves, liquidity and network, not by the interest rate.
- Split a large reserve between two issuers and always double-check the transfer network.
FAQ
Which stablecoin is the most reliable?
There's no clear-cut answer. Look at how transparent the reserves are, how the issuer is regulated, its track record of holding the peg and its liquidity. Many traders split their reserve between two stablecoins from different issuers so they don't depend on just one.
Can USDT lose value?
Yes. Any stablecoin can temporarily or permanently lose its dollar peg because of problems with its reserves, its custodian bank or a panic. It has happened before — with UST in 2022 and briefly with USDC in 2023.
Is there a stablecoin pegged to the tenge?
Yes — tenge stablecoins have been launched in the National Bank of Kazakhstan's regulatory sandbox: KZTE (2025) and KZTg in Telegram (September 2026). The National Bank is also preparing its own project. These are pilots, so check access terms with the issuer.
Which network should I use to send USDT?
One that both the sender and the recipient support. Networks differ in fees: transfers on Ethereum cost more, while Tron, BNB Chain and Solana are cheaper. Sending on the wrong network can mean losing the money.
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Not investment advice. Trading involves risk — always use a stop-loss.