New Stablecoin Issuer Raft Is Eschewing Fiat for Its Financial Backing

Whereas the most important stablecoins, Tether’s USDT and Circle Web Monetary’s USDC, are backed by standard belongings like U.S. Treasurys, these backed as an alternative by crypto belongings have had blended success. MakerDAO’s DAI, which is collateralized by a mix of Ethereum-based tokens, stablecoins and real-world belongings corresponding to U.S. authorities bonds, has accrued about $4.6 billion of market capitalization. In the meantime, Do Kwon’s UST – which was backed by his LUNA token – collapsed spectacularly a 12 months in the past.