If you use USDT for trading or payments, you’ve probably wondered what other 1:1 USD stablecoins exist—especially ones with clear reserve disclosures and strong oversight. Below are five widely used, fiat-redeemable options that aim to hold $1.00 at all times, along with what makes each different and when to reach for them.
Before we jump in, a reminder on what “good” looks like for USDT alternatives: transparent, high-quality cash and T-bill reserves, 1:1 redemption with the issuer, frequent attestations or reporting, and—ideally—regulatory supervision. New York’s Department of Financial Services (NYDFS), for example, set guidance that USD-backed stablecoins under its remit must be fully reserved in low-risk, highly liquid assets and redeemable 1:1. That’s a useful yardstick when comparing stablecoins.
1. USDC — Circle’s fully reserved dollar coin
What it is: A fiat-backed stablecoin from Circle (with Coinbase as co-founder of the Centre consortium originally).
What backs it: “Highly liquid cash and cash-equivalent assets,” with most reserves held in the Circle Reserve Fund (USDXX), an SEC-registered government money-market fund. USDC is always redeemable 1:1 for U.S. dollars, and Circle publishes ongoing transparency updates.
Why it’s a solid USDT alternative:
- Reserve quality & reporting: short-duration U.S. government instruments and cash, with daily transparency on the fund’s portfolio.
- Broad acceptance: deep liquidity on major exchanges and DeFi, multi-chain support, and straightforward off-ramps.
- Caveat: As with any fiat-backed coin, you rely on issuer operations and banking partners.
Best for: traders who want tight spreads and institutions that prioritize reserve clarity and 1:1 redeemability.
2. PYUSD — PayPal’s stablecoin (issued by Paxos)
What it is: PayPal USD (PYUSD), a regulated, fiat-backed stablecoin issued by Paxos Trust Company and integrated into PayPal and Venmo.
What backs it: U.S. dollar deposits, short-term U.S. Treasuries, and cash equivalents; redeemable 1:1. PayPal expanded PYUSD to Solana in 2024, lowering fees for on-chain payments.
Why it’s a solid USDT alternative:
- Consumer rails: native PayPal/Venmo send features and a push toward merchant acceptance.
- Regulatory posture: issued by Paxos, a NYDFS-regulated trust company with frequent reserve attestations across its products.
- Caveat: Coverage and features may vary by region; it’s early days for broader DeFi integrations compared to USDC.
Best for: payments and retail users who already live in the PayPal/Venmo ecosystem but want an on-chain dollar.
3. USDP — Pax Dollar (Paxos)
What it is: USDP, a fiat-redeemable dollar stablecoin from Paxos Trust Company.
What backs it: Cash and short-duration U.S. Treasuries; 1:1 redemption. Paxos emphasizes NYDFS oversight and conservative reserve management.
Why it’s a solid USDT alternative:
- Regulated issuer: NYDFS-supervised with well-documented reserve practices (e.g., T-bills with ≤3-month maturities).
- Clean brand separation: After the 2023 BUSD wind-down, Paxos pushed USDP as the go-forward, regulated $1 coin in its lineup.
- Caveat: Smaller network footprint than USDC, so check liquidity on your preferred exchange/chain.
Best for: users who want a NYDFS-supervised coin from an infrastructure provider that also issues PYUSD.
4. GUSD — Gemini Dollar (Gemini Trust Company)
What it is: A fiat-backed stablecoin issued by Gemini Trust Company, also under NYDFS oversight.
What backs it: U.S. dollar reserves held at regulated institutions; monthly attestations by BPM LLP verify that reserves match circulating supply; 1:1 redemption with Gemini.
Why it’s a solid USDT alternative:
- Attestations & oversight: one of the earliest coins to publish monthly third-party attestations under a state trust company framework.
- Gemini integration: easy conversion inside the Gemini app with no conversion fee (check current terms).
- Caveat: Lower circulating supply than USDC/PYUSD; ensure trading pairs and on-chain liquidity meet your needs.
Best for: those who value simple, audited reserves and straightforward on/off-ramp via a U.S. exchange.
5. FDUSD — First Digital USD (First Digital Labs)
What it is: FDUSD, a fiat-redeemable stablecoin issued by First Digital Labs (Hong Kong).
What backs it: Cash and cash equivalents (short-dated U.S. Treasuries and overnight repos) held in segregated, bankruptcy-remote structures, with monthly independent attestations; 1:1 redemption.
Why it’s a solid USDT alternative:
- Exchange footprint: gained significant traction on major global venues in 2024–2025.
- Transparency page: regular reserve breakdowns and attestations available for download.
- Caveat: Legal and regulatory regimes differ across jurisdictions—read issuer docs carefully if you’re U.S.-based or need specific protections.
Best for: active traders looking for tight pairs on Asia-centric venues and a 1:1 USD coin with frequent attestations.
How to pick among $1-pegged USDT alternatives
1) Check the reserve page first.
Look for cash/T-bill language, 1:1 redeemability, and frequent attestations (monthly or better). Circle (USDC), Paxos (PYUSD/USDP), Gemini (GUSD), and First Digital (FDUSD) all publish transparency pages that spell this out plainly.
2) Prefer regulated frameworks where possible.
NYDFS guidance requires full reserve backing and redeemability, which can add discipline around audits and disclosures. Even if you’re outside New York, that bar is a useful benchmark.
3) Match the coin to your use case.
- Trading & DeFi: USDC has the deepest multi-chain liquidity; FDUSD is strong on specific centralized venues.
- Payments & consumer rails: PYUSD fits if you use PayPal/Venmo, and it’s on Solana to reduce on-chain fees.
- Simple attestations + exchange on-ramp: GUSD and USDP are easy to understand and redeem through their issuers.
4) Spread venue and issuer risk.
Even high-quality stablecoins can face banking, legal, or operational hiccups. Diversifying across issuers and chains reduces single-point-of-failure risk—a lesson underscored by central-bank and BIS commentary on stablecoin fragility.
5) Don’t ignore redemption mechanics.
If you need to redeem for dollars, confirm who can redeem (institutions vs. retail), settlement times, and any minimums. Issuers are transparent about this—read the FAQ/prospectus-style materials.
Conclusion
If you want USDT alternatives that stick close to $1.00 with clear reserves and redemption, your shortlist in 2025 looks like USDC, PYUSD, USDP, GUSD, and FDUSD. Each is fiat-backed 1:1, publishes regular attestations/transparency, and targets mainstream use—whether that’s deep exchange liquidity, payments via PayPal/Venmo, or a straightforward redeem-with-issuer model. Use the reserve pages and regulatory disclosures as your north star, match the coin to your actual use case, and keep a little diversification across issuers and chains. That’s how you make “$1 on-chain” behave the way you expect.