The largest stablecoins have all endured periods of turmoil in the last few months. In February, New York state regulators ordered Paxos to halt minting Binance USD (BUSD), the third largest stablecoin at the time. Next month, the collapse of Silicon Valley Bank (SVB) temporarily froze a sizable portion of USDC’s cash reserves, which affected Maker’s DAI stablecoin. Last month, USDT endured sell pressure in a key stablecoin liquidity pool, spooking traders, and TUSD weathered the implosion of its custodial partner.
