"Stablecoins fill a very important role in the digital asset ecosystem," says Mauricio Di Bartolomeo, chief strategy officer and co-founder of cryptocurrency lender Ledn.
Di Bartolomeo calls USDC "the best stablecoin in the market right now in terms of integrity and transparency.
The only decentralized stablecoin available on the market so far is Dai (DAI), meaning that it is algorithmic and isn't backed by any central authority.
The biggest problem that dollar-pegged Binance USD could face, according to Di Bartolomeo, is that it's attached to a particular crypto exchange, Binance.
Paxos as a company is "probably second or third on the list after Circle to get its dollars in the good books of regulators," says Di Bartolomeo.
TrueUSD is another "reputable operator," according to Di Bartolomeo.
Besides the U.S. dollar, gold has been used to back stablecoins. One of the best current bets for a gold-backed stablecoin is Digix Gold Token (DGX).