Stablecoins are a unique category of cryptocurrencies designed to maintain a stable value, often pegged to fiat currencies like the US dollar or commodities such as gold. Their practicality has propelled major stablecoins into the top 10 by market capitalization.
This guide explores the mechanics, classifications, and future prospects of stablecoins, along with where you can purchase them in Japan.
Key Takeaways
- Stablecoins are cryptocurrencies pegged to stable assets (e.g., fiat, crypto, or algorithms) to minimize volatility.
- They are categorized into "fiat-collateralized," "crypto-collateralized," and "algorithmic" types.
- Not all pegs are flawless—algorithmic stablecoins like TerraUSD (UST) collapsed in 2022.
- Regulatory discussions are underway globally, with Japan positioning them as e-payment tools.
👉 Discover top stablecoins to invest in
Latest Updates: Walmart and Amazon Explore Stablecoin Issuance
Walmart and Amazon are reportedly considering issuing USD-pegged stablecoins. If realized, this could reduce high card fees in international payments and accelerate transaction speeds, potentially shifting financial control from traditional banks to tech giants.
This move aligns with the GENIUS Act (Guiding and Establishing National Innovation for U.S Stablecoins Act), currently under review in the US Congress, which could streamline corporate stablecoin issuance.
What Are Stablecoins?
Stablecoins are cryptocurrencies engineered to mirror the value of stable assets like fiat currencies or commodities. For instance, Tether (USDT) maintains a 1:1 peg with the USD.
Unlike traditional cryptocurrencies, which are highly volatile, stablecoins offer price stability, making them practical for:
- Blockchain-based services (most don’t accept fiat).
- Everyday transactions and remittances.
Demand Insight: As of July 2025, two stablecoins (USDT and USDC) rank in the top 10 by market cap.
Types of Stablecoins
Stablecoins are classified by their underlying collateral:
1. Fiat-Collateralized Stablecoins
- Backed 1:1 by fiat reserves (e.g., USD).
Examples:
- Tether (USDT)
- USD Coin (USDC)
- Binance USD (BUSD)
Concerns: Transparency of reserves varies.
2. Crypto-Collateralized Stablecoins
- Overcollateralized with other cryptocurrencies (e.g., DAI requires 130% ETH collateral).
Examples:
- DAI
- sUSD (SUSD)
- RLUSD (new in 2025)
3. Algorithmic Stablecoins
- No collateral; supply adjusted algorithmically.
Examples:
- Frax (FRAX)
- Neutrino USD (USDN)
- Risks: TerraUSD (UST) lost its peg in 2022, crashing to near zero.
Top Stablecoins in 2025
| Coin | Peg | Market Cap (¥) | Rank | Available in Japan? |
|------------|----------|----------------|------|----------------------|
| USDT | USD | 22.7T | 3 | No |
| USDC | USD | 8.8T | 7 | Yes (SBI VC Trade) |
| EURC | Euro | 29.2B | 182 | No |
| XAUT | Gold | 117.3B | 81 | No |
Where to Buy Stablecoins in Japan
1. Coincheck (DAI)
- Features: User-friendly app, plans to list USDC.
- Trade: Visit Coincheck
2. SBI VC Trade (USDC, ZPG)
- First Japanese platform to offer USDC.
3. GMO Coin (DAI)
- Zero withdrawal fees.
Future Outlook
- Multi-Chain Expansion: Stablecoins like USDC now support multiple blockchains.
- Asia-Driven Adoption: Japan and Singapore lead regulatory efforts.
- Regulations: The US GENIUS Act may formalize stablecoin issuance.
- Market Consolidation: Weak projects may fade as standards tighten.
FAQs
Q: What’s the difference between stablecoins and regular cryptocurrencies?
A: Stablecoins are pegged to stable assets (e.g., USD), reducing volatility compared to unpegged crypto like Bitcoin.
Q: Which stablecoins are ranked highest?
A: USDT, USDC, DAI, FDUSD, and USDD lead the market.
Q: Are algorithmic stablecoins safe?
A: Risks exist—TerraUSD’s collapse showed they can fail without collateral.
Final Thoughts
Stablecoins bridge crypto’s flexibility with fiat’s stability, but their success hinges on transparency and regulation. For Japanese investors, platforms like Coincheck and SBI VC Trade offer accessible entry points.
👉 Explore Coincheck’s offerings
Interested in crypto trading? Compare exchanges in our 19 Best Crypto Exchanges guide.