in decentralized stablecoins, Markets, National Institute of Standards and Technology (NIST), Stablecoin Regulations, Stablecoin Security, Stablecoins, US Dollar

Stablecoins Plagued by Security Issues and Trust Concerns

by Repost Admin October 8, 2022, 11:42 am 1.9k Views

The National Institute of Standards and Technology (NIST), an agency under the United States Department of Commerce, has conducted a study exploring the technology and security concerns surrounding stablecoin.

The non-regulatory agency studied the top 20 stablecoins by market cap over the past year and discovered that only five of them were able to maintain their peg throughout the period.

Top 5 stablecoins are pegged to the US Dollar

According to the agency, these stablecoins are USDT, USDC, BUSD, DAI, and FRAX. The agency highlighted that the five are pegged to the US dollar and they had a mean maximum value of $0.9934 and a minimum value of $0.9871.

Additionally, the top five accounted for 87% of the market cap of the top 20. 83% of the top 20 are fiat-backed, while 10% a