This article explores how Sign works, its flagship products (such as TokenTable, SignPass and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

Sign is an omnichain attestation infrastructure that empowers users and developers to verify real-world claims on-chain. Built for a more transparent and decentralized future, it eliminates the need to “just trust” and enables everyone to verify with cryptographic proof.

This article explores how Sign works, its flagship products (such as TokenTable and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

 is an omnichain attestation protocol designed to make it easy for anyone to verify the authenticity of any claim — 

. Whether it’s a document, credential or user identity, Sign transforms traditional trust models into verifiable, cryptographic attestations. 

Sign’s mission is to replace outdated, opaque validation systems with transparent, 

 proof — enabling a future where “verify” replaces “trust.” Through tools like schema registries and digital signatures, Sign empowers users to bring accountability and integrity to digital interactions.

Sign is developed by the team behind EthSign, a 

-native e-signature and agreement platform. Its core team brings deep experience in 

 development and cross-chain integrations.

The project is backed by top-tier investors, including Sequoia Capital China (now known as HongShan Capital Group), Mirana Ventures, HashKey Capital and Hack VC.

This strategic funding positions Sign as a foundational layer in the web3 infrastructure stack.

Sign allows users to create attestations — cryptographically signed statements that prove the validity of claims, such as credentials, achievements or actions. These digital proofs can be verified by anyone at any time, making them tamperproof and transparent.

Sign’s key technical elements include a schema registry that ensures consistent data formatting, digital signatures proving authenticity, and on- and off-chain attestations with support for revocation or updates

This system acts like a programmable layer for web3, bringing a new level of trust to identity, credentials and data exchange.

TokenTable is Sign’s flagship token distribution platform. It helps projects unlock, distribute and manage tokens transparently and securely at scale.

It uses Sign’s attestation engine to verify token unlocks, 

 and vesting schedules, ensuring traceable, auditable token flows.

SignPass is a blockchain-based identity solution that brings real-world credentials on-chain. One notable implementation is the Sierra Leone PR Card, used for the world’s first government-approved on-chain permanent residency program.

SignPass offers encrypted on-chain records for easy 

 verification, physical ID issuance for daily identity use and streamlined digital application systems for cross-border access.

It showcases the way blockchain can modernize public sector services worldwide.

EthSign is a decentralized contract signing platform that lets users create, sign and store legally binding agreements directly on-chain. It removes intermediaries and ensures documents are immutable and accessible.

EthSign reinforces Sign’s mission by bringing traditional documentation into the realm of verifiable web3 attestations.

The SIGN token is the native utility token powering the Sign ecosystem. It’s used for:

The total supply is capped at 10 billion SIGN, with 1.2 billion tokens in circulation. While the fully diluted valuation (FDV) sits above $746 million as of May 7, the circulating market cap is approximately $89.6 million. SIGN continues to gain traction across exchanges and developer networks.

SIGN is available for trading on Bybit via Spot trading and as a USDT Perpetual contract. Bybit offers up to 75x leverage for the SIGNUSDT Perpetual contract and supports secure, high-liquidity spot trading.

Start exploring the future of attestations with SIGN on Bybit today.

Intermediate

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Sign (SIGN): Web3 protocol for trustless attestation

Compliant trading means following platform rules and avoiding manipulative behavior. Learn more about how you can trade responsibly and compliantly on Bybit.

Crypto trading has come a long way from what used to be the domain of institutional players, and is now open to almost anyone with an internet connection. It’s easier than ever to buy and sell digital assets, try new strategies or build a portfolio from scratch all within minutes.

But with that level of access comes responsibility. As more people join the market, the need for fairness and accountability has become even more important. This isn’t just about price charts or profits — it’s about keeping the playing field level for everyone involved.

At Bybit, we take that responsibility seriously. We're here to offer the tools, safeguards and education you need to help you trade responsibly and to protect the platform from misuse.

This article describes what it actually means to trade compliantly, why it matters — and what can happen if things go off course.

Compliant trading means playing fair, following the platform’s rules, staying within the boundaries of what’s allowed and avoiding anything that could unfairly affect the market.

It’s not about avoiding risk: it’s about knowing what you’re doing, using official tools the right way and making sure your trades aren’t causing harm to yourself or others.

In short, compliant traders don’t just focus on their P&L — they understand that how they conduct themselves while trading matters. Responsible trading protects their accounts, keeps the platform stable and builds long-term credibility in the crypto ecosystem.

Why does responsible and compliant trading matter?

It’s easy to assume that compliance is only something platforms or regulators need to worry about. But in reality, every trader plays a part. When someone attempts to exploit the system — for example, by coordinating mass trades through off-platform channels — the consequences can ripple across the entire market.

In extreme cases, irresponsible trading behavior can:

And if the trades in question are linked to coordinated action, use of fake accounts or external bots? That opens the door to account freezes, compliance reviews and, in some cases, permanent suspension.

Bybit has a responsibility to act when the system is being abused — not just for legal reasons, but in order to protect honest traders.

Common examples of noncompliant or risky behavior

Some traders join Telegram groups or online communities in which KOLs (key opinion leaders) give out coordinated trading instructions (for example, “Buy token A now, sell it in an hour”). This practice isn’t just risky: it often involves a small number of insiders benefiting while the majority end up with losses.

When many people follow the same instruction all at once, it can artificially inflate the price of a low-liquidity token. The KOLs then exit at the top —while others are left with falling prices and unexpected liquidations.

Such a textbook case of market manipulation violates our Terms of Service and, depending upon jurisdiction, could violate financial laws.

Using bots or unverified trading strategies

Some Telegram groups may seem convincing, but trades coordinated off-platform are often unverified and may serve someone else’s agenda. 

 programmed to front-run trades, mimic pump-and-dump strategies or follow unverified signals can trigger compliance red flags and may lead to account restrictions.

Bybit does not support trading bots from unverified sources. They can also trigger flags in our monitoring systems, which may result in account suspension.

Using another person’s account or sharing login credentials — even if it’s with a family member — goes against both Bybit’s policies and global 

(AML) rules. It also opens the door to fraud, loss of funds and irreversible penalties.

Tips for responsible and compliant trading on Bybit

The good news is that there’s a better way to trade — responsibly, safely and with confidence, starting with the right tools, mindset and habits.

Use copy trading the way it’s meant to be used

 is one of Bybit’s most trusted features, and for good reason. It gives users access to professional traders’ strategies while maintaining full transparency. However, it only works if you follow verified 

These traders have been vetted and their stats are fully visible. You can view their P&L, risk settings and trade history. Bybit also provides built-in tools, such as 

 and staking products allow you to earn passive yield with minimal effort. These products are fully backed by our infrastructure and undergo regular audits, and are a compliant way to generate returns without chasing risky trades.

No matter how convincing a Telegram group may sound, remember that trades executed outside of regulated channels are unverified and often unaccountable. They may be coordinated for someone else’s gain.

 offers a wide range of articles and tutorials, covering everything from indicators and oscillators to advanced portfolio strategies. Before following any external signal, it’s worth spending 10 minutes to understand the rationale behind it. In trading, knowledge is your best form of compliance. Before you enter any position, ensure that you fully understand the asset you're trading, the current market conditions and the risks involved.

, never share your login credentials, and always enable two-factor (2FA) authentication. In addition, all trading activity should originate from your own account and remain under your own control.

Bybit’s systems are designed to flag irregular behavior. If your account is found to be engaging in prohibited activity, even unintentionally, you may be:

We take these steps in order to protect the broader user base and to uphold market fairness.

Being compliant doesn’t mean missing out on opportunity. In fact, it’s the opposite. It means you’re using the platform the way it was designed, with safeguards, transparency and trust. Shortcuts might look appealing in the short term, but they rarely end well. The most successful traders on Bybit are the ones who understand risk, stay informed and trade with integrity.

Take the time to learn and use the tools available to you. And remember: protecting your account starts with choosing how you’ll trade.

Beginner

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How to trade compliantly and responsibly on Bybit

Discover how DAI evolved into USDS under the Sky protocol—unlocking passive rewards, scalability, and a new era of DeFi with Sky Token Rewards.

In September 2024, MakerDAO, a pioneering 

 (DeFi) protocol, underwent a significant transformation by rebranding itself as 

 (SKY). This rebranding was part of the project's comprehensive strategy to enhance scalability, user engagement and regulatory compliance. The major changes that came with the rebranding include token upgrades, whereby the platform’s stablecoin, Dai, was upgraded to USDS (Sky Dollar) while the 

Let’s take a deeper look at USDS and its role on the Sky platform.

USDS (United States Dollar Sky) is the upgraded version of the Dai stablecoin, launched under the newly rebranded Sky protocol (formerly MakerDAO).

 Like DAI, USDS is a decentralized, overcollateralized stablecoin designed to maintain a 1:1 peg with the US dollar.

However, USDS significantly improves scalability, user incentives and regulatory positioning, making it a next-generation solution for DeFi.

One of the standout features of USDS as a stablecoin is that it creates 

 opportunities for its investors. With USDS, you can access the Sky Savings Rate (SSR) feature, which allows you to participate in the Sky ecosystem's governance by accumulating Sky Token Rewards (STR) (presented in the form of SKY tokens).

SSR also features a variable automated token accumulation feature, whereby you receive 

 to the SSR program. This passive earning potential offers a major advantage for users seeking yield without complicated 

Sky uses a dynamic model that adds USDS to the SSR pool every few seconds. Over time, the value of sUSDS in the particular pool increases. You can then opt to redeem your sUSDS for USDS, and receive the USDS you initially supplied in addition to the USDS equivalent you’ve accumulated.

These rewards serve as an incentive mechanism, enabling users to passively grow their holdings while supporting the health and stability of the Sky ecosystem.

Upgrading from DAI to USDS is straightforward. Users can visit Sky.money and initiate the upgrade directly through a noncustodial, user-controlled process.

The platform provides a simple interface on which users connect their wallets, exchange their existing DAI for an equal amount of USDS and instantly become eligible for yield accumulation and other Sky ecosystem benefits. There are no fees for the upgrade, and users retain full control of their assets at all times.

USDS isn’t just a stablecoin; it’s an evolution of DeFi money. With passive earning through Sky Token Rewards and a smooth, secure upgrade path, USDS sets a new standard for the way decentralized stablecoins can deliver value and financial empowerment to users worldwide.

USDS and DAI are both decentralized stablecoins originally developed under the MakerDAO ecosystem (now Sky). While they share the same core principle — overcollateralization and the maintenance of a 1:1 peg with the US dollar — USDS represents a major evolution of DAI, introducing additional incentives designed to enhance user experience, scalability and regulatory alignment.

DAI has long been a favorite in the DeFi ecosystem, allowing users to generate stablecoins by locking up crypto collateral such as 

. DAI features a savings program, the DAI Savings Rate (DSR), from which people can earn 

 (sDAI). While the DSR program is still running, upgrading to USDS lets you earn two types of rewards through the SSR program: sUSDS tokens and Sky Token Rewards (STRs).

In addition, USDS is well positioned to meet regulatory requirements, aiming for broader mainstream adoption while maintaining decentralization.

Below is a comparison table between DAI and USDS:

USDS is backed by collateral that’s deposited in Sky vaults by borrowers. In return, the reserves for these vaults are backed by three main assets: 

With a market cap of over $8 billion, USDS is the currently third-largest stablecoin after 

 is more complex than that of typical stablecoins, as it includes liquidation mechanisms and a peg-stability module. However, an audit of USDS’s smart contract in September 2024 didn’t report any significant risks with the stablecoin. Notably, S&P Global Ratings 

 of 4 out of 5, indicating constrained ability to maintain its peg under certain conditions. 

​Additionally, the proposal to include a freeze function for USDS, which bestows upon the Sky protocol the power to halt USDS transfers between wallets, has sparked heated discussions within the community, highlighting the ongoing conundrum of balancing security measures with principles of decentralization.

The evolution of DAI to USDS marks a major leap forward for DeFi. By combining DAI's trusted and overcollateralized model with additional passive earning opportunities through Sky Token Rewards, USDS empowers users to enjoy greater financial benefits with less complexity.

The streamlined upgrade process and stronger regulatory positioning set the stage for broader adoption and a more resilient future. As Sky continues to build, USDS represents more than just a stablecoin — it’s the foundation of an open, accessible and more rewarding financial ecosystem for everyone.

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From DAI to USDS: Unlocking an open Sky for a more rewarding future

Vietnam is establishing a crypto regulatory sandbox and legal framework to bring clarity, security and oversight to its fast-growing digital asset market.

With a tech-savvy population and high rates of crypto adoption, Vietnam is a hotbed of crypto activity. About 17 million of the population own digital assets, as blockchain market flows into Vietnam reached $105 billion from 2023–2024, 

. However, the absence of a clear legal framework has posed challenges for investors, businesses and regulators. Recognizing the need for structured oversight, the Vietnamese government has initiated decisive steps to establish comprehensive regulations for the crypto sector. 

This article delves into Vietnam's current stance on cryptocurrencies, its implementation of a regulatory sandbox, collaborative efforts with industry leaders like Bybit — and the broader implications for traders and the crypto industry.

Vietnam currently lacks a formal legal framework that specifically addresses cryptocurrencies and digital assets. As a result, these digital currencies operate in a regulatory gray zone — neither fully legal nor banned. Existing financial laws only recognize electronic money tied directly to fiat currencies, such as prepaid bank cards and e-wallets, leaving cryptocurrencies like 

This lack of legal clarity has pushed many crypto-related businesses to register in jurisdictions with clearer regulations, such as Singapore and the United States, before operating within Vietnam. A workaround that has led to the loss of potential tax revenue has weakened the competitiveness of Vietnam’s domestic market in the growing digital economy.

Still, despite this uncertainty, Vietnam ranks among the top countries globally for crypto ownership and trading volume, and the stark contrast between widespread adoption and the absence of clear regulations points to the urgent need for a comprehensive legal framework. Recognizing this, the Vietnamese government has begun drafting new regulations to bring clarity and oversight to the digital asset space.

A regulatory sandbox is a controlled environment that allows financial technology innovations to be tested in real-world conditions for a limited time under the watchful eye of regulators. It provides a safe space in which to experiment with new products and services, while ensuring that consumer protection and market stability remain a priority.

How does Vietnam’s regulatory sandbox initiative work?

Vietnam’s regulatory sandbox is designed as a safe, controlled space in which financial technology innovations — including those involving digital assets and cryptocurrencies — can be tested under regulatory supervision. It operates under a multi-agency governance structure, with the 

This committee is responsible for licensing participants, supervising operations, assessing potential risks and ensuring the overall stability of the fintech ecosystem. It works closely with the State Bank of Vietnam (SBV), which was officially assigned to develop the sandbox under newly minted 

, as well as other key agencies like the Ministry of Finance and the Ministry of Public Security.

. The Ministry of Finance is responsible for developing legal guidelines and licensing service providers, while the Ministry of Public Security focuses on combating fraud, money laundering and other criminal activities within the digital asset market. Lastly, the State Bank of Vietnam monitors the impact of digital assets on the country’s monetary policy and overall financial system.

, businesses must undergo a formal assessment process. Eligible participants include credit institutions, independent fintech startups or fintech firms partnering with banks. After passing initial evaluations by the SBV, approved entities receive a registration certificate signed by the prime minister. These businesses then enter a testing phase lasting one to two years that allows regulators to observe how the businesses’ operations function in a live but supervised environment.

 preventing money laundering, managing digital asset transactions, regulating crypto mining activities and establishing oversight for the issuance, ownership and trading of 

. This initiative will roll out gradually, starting with the launch of financial centers in Ho Chi Minh City and Da Nang in 2025. 

 using crypto assets are expected to begin by Jul 1, 2026. 

How Bybit is supporting Vietnam in its path toward regulatory clarity

Bybit is closely collaborating with the Vietnamese government, particularly the Ministry of Finance, to contribute to the development of a regulatory sandbox. This controlled testing environment allows new crypto regulations to be explored and fine-tuned before being rolled out nationwide. During the 

, Nguyen Van Thang, Bybit CEO Ben Zhou emphasized the importance of building a secure, transparent and innovation-friendly crypto ecosystem that protects investors and upholds market integrity.

 is its technical support for Vietnam’s pilot crypto trading platform, which is operating within the sandbox framework. This initiative enables regulators to safely observe real-time crypto transactions and better understand market behavior. Bybit brings its deep expertise in areas like system architecture, transaction monitoring and the implementation of robust compliance tools, such as 

 (KYC) protocols — essential elements for ensuring digital assets aren’t misused, and that regulatory standards are met.

Enabling Vietnam’s crypto infrastructure

But Bybit’s involvement goes beyond technology. The exchange is also focused on empowering Vietnamese regulators through hands-on training and capacity building. These sessions are designed to equip officials with the skills and knowledge needed to effectively oversee a fast-growing crypto market. The 

 has been tasked with working directly alongside Bybit to explore future steps, a move that reflects the Vietnamese government’s confidence in Bybit’s global track record and regulatory experience.

While mainly focused on compliance, this collaboration is also a forward-looking partnership aimed at creating a balanced regulatory environment that nurtures innovation while ensuring financial stability. Bybit is helping Vietnam lay the foundation for a legal framework that can adapt to the rapid evolution of crypto technology. In doing so, the country is firmly positioning itself as a leader in the digital economy.

Why this matters for crypto traders and the industry

Vietnam’s move to establish a crypto regulatory sandbox (and eventually, a full legal framework) means greater security and peace of mind for individual investors and traders. The sandbox enforces strict KYC and AML protocols, reducing the risk of 

. With clear rules expected by May 2025, traders will finally have legal certainty, allowing them to operate confidently without fear of running afoul of unclear or outdated regulations.

For the crypto industry, the sandbox offers a rare opportunity to test new products and services under the watchful eye of regulators without immediately facing the full weight of compliance laws. This creates room for innovation that will help exchanges, token issuers and startups build trust and scale faster. The government’s support for building financial centers in cities like Ho Chi Minh City and Da Nang adds momentum, turning Vietnam into a potential regional hub for crypto businesses and investors.

As the framework takes shape, clearer licensing and operational guidelines will enable crypto platforms to run with greater transparency and reliability, boosting confidence for both institutional players and everyday users. Integration with national data systems will also strengthen transaction monitoring, and reduce risks related to energy-heavy mining operations or illicit activity. With major industry players like Bybit helping to realize this vision, Vietnam is laying the groundwork for a secure and innovation-friendly market.

Ultimately, this regulatory shift benefits everyone: Traders get protection and clarity, and industry players gain a supportive environment in which to grow. Vietnam will be positioning itself as a forward-looking nation that’s ready to welcome the future of finance, attracting foreign investment, driving adoption and unlocking new revenue streams to support economic growth.

Vietnam is taking bold steps toward regulating its crypto market through a structured regulatory sandbox and partnerships with industry leaders like Bybit. These efforts aim to create legal clarity, protect investors and encourage innovation. For traders and businesses alike this marks a turning point, ushering in a safer, more transparent and opportunity-rich environment as Vietnam embraces an alpha role in the global digital economy.

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Crypto regulations in Vietnam: A path toward regulatory clarity

Bybit Learn

Altcoins

Crypto

Stablecoin

Stablecoins like USDT, USDC, and BUSD are fiat-backed cryptocurrencies. A combined market cap of $120 billion proves that they are here to stay. But what makes them unique? Learn more.

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are cryptocurrencies whose values are pegged to a stable asset, mostly fiat currencies. Tether (

) and Binance USD (BUSD) are the three most popular stablecoins, with a combined 

 of $120 billion. However, with the recent buzz around BUSD, there’s no doubt that most investors would be curious to know if BUSD is still worth investing in — or if you should simply pile your investments into USDT, USDC or other 

While stablecoins are known to allow faster, lower-cost and safer transactions without the limitations associated with traditional banking, such as location-based restrictions and lack of financial services during holidays, investors nowadays are uncertain following the May 2022 collapse of TerraUSD (UST).

Despite this, the global cryptocurrency market is forecasted to rise to above 

, proving the popularity of cryptocurrencies worldwide.

Stablecoin is a type of cryptocurrency that’s more reliable and less volatile than its high-profile counterparts like Ethereum and Bitcoin, which means there’s more significant potential for safer investments. 

But which stablecoin should you trade? How do stablecoins compare to fiat currencies? Below, you’ll learn everything about the three main stablecoin supplies and how they differ from each other.

A stablecoin is a cryptocurrency that has its value associated with another asset class, like gold or 

, “True stablecoins are non-interest bearing coins designed to have stable value against a reference currency — say $1 [one U.S. dollar].” Although mainstream crypto assets like Bitcoin are beneficial because you don’t need to trust an intermediary institution, they’re highly susceptible to price fluctuations.

Stablecoins eliminate this flaw by tying the currency’s value to another stable asset, mostly fiat currencies such as dollars or euros.

The coin’s issuer has a “reserve” with assets that assure buyers the issuer can redeem the outstanding coins.

The first stablecoin was created in 2014 and named Tether. Most other stablecoins are modeled after Tether, with users receiving a single token for every dollar.

Theoretically, users can get their original currency — dollars — back at a 1:1 exchange rate. Initially, people used stablecoins to buy common cryptocurrencies, such as Bitcoin, as many exchanges didn’t have banking access.

Thus, stablecoins were a more reliable option, available 24/7 worldwide, and without requiring reliance on traditional banking channels. In addition, money transfers are completed in a matter of seconds.

What Factors Have Contributed to the Growth of Stablecoins?

 gave rise to the concept of stablecoin. Unlike many other currencies, the code in a smart contract helps refine the agreements of a contract to facilitate the seamless transfers, lending and payment of money, with limited human intervention. 

Still, the primary factor fueling the popularity of stablecoins is their almost negligible volatility as compared to conventional cryptocurrencies. On top of that, industry partnerships also contribute to the growth of stablecoins.

For instance, in a recent corporate move, 

, the blockchain maestros behind USDC. This partnership allows Circle corporate cardholders to spend their USDC stablecoin at merchants who accept Visa.

Even better, the U.S. Treasury’s Office of the Comptroller of the Currency (OCC) has 

 for banks to use stablecoins like USDC. 

Thus, federal savings associations and banking channels can now use blockchain for coins like USDC, just as with SWIFT transfers or ACH.

The future seems bright for stablecoin holders, since the currency may offer a widely accepted payment method to cut costs on data processing and international transfers. Moreover, banks may use stablecoins to minimize the threat of digital challenges.

It’s also likely that digital wallets such as Cash App and Venmo — which have recently enabled crypto purchasing — may use stablecoins in the future to make peer-to-peer (P2P) payments a breeze.

Although there are dozens of different stablecoins, the three most common ones are USDT, USDC and BUSD.

 (the symbol for Tether) is a stablecoin pegged to the U.S. dollar at a 1:1 exchange rate. Thus, one U.S. dollar is equivalent to one USDT. Buyers can spend, transfer or trade USDT as they would their regular fiat currency. Tether is issued by iFinex, the Hong Kong-registered company that also owns the crypto exchange Bitfinex.

Initially, USDT was created to tackle the following issues:

Tether is in the limelight as the third-biggest cryptocurrency in the world and continues to be the largest stablecoin by market cap in front of USDC.

However, USDT is known not to be transparent about its reserves. In 2019, they claimed that every USDT is backed by one U.S. dollar in cash, held by the company, but in 2021, Tether (the company) was fined $41 million by the U.S. Commodity Futures Trading Commission (CFTC). This was due to Tether’s false claims that its USDT stablecoins were fully backed by real-world fiat money.

Tether has since had an audit in May 2021 and updated its website to include more details about its cash reserves. A shocking revelation is that it only held 2.9% of its reserves in cash back then. However, that number has since increased, and Tether has begun releasing monthly transparency reports.

Although a few controversies surround Tether’s stability at $1 and the actual amounts of U.S. dollars backing each USDT coin, there are still many reasons to prefer the coin over regular currency, as we’ll discuss below.

 is another stablecoin with its price pegged to the U.S. dollar. It’s issued by Centre Consortium, LLC, which consists of Circle and Coinbase, to speed up fund transfer times and reduce volatility associated with Bitcoin and other cryptocurrencies.

As an Ethereum token, USDC can be stored in a wallet compatible with blockchain. Besides facilitating transfers, USDC also allows users to benefit from higher yields when lending their stablecoins through different 

The popularity of the USD coin has increased significantly in the past few years, with a daily average of $4 billion sent through the Ethereum network in March 2023. Its popularity has also landed itself 

 with leading crypto exchanges, such as Bybit, to launch USDC Spot pairs to promote its adoption. To further support USDC, Bybit has recently also launched its 

 with three events that users can participate in.

, from Algorand, Avalanche, Solana and Tron to Hedera, Polygon and more, growing their adoption as crypto becomes multichain.

 to prove that they have an equivalent amount of USD backing their USDC to assure investors that they’re fully backed. However, the recent news of the USDC depegging has left many uncertain.

 of the Silicon Valley Bank, which held $3.3 billion (or 8%) of USDC reserves on Mar 10, 2023. While federal regulators stated that all depositors, including Circle, would be able to retrieve their funds, it didn’t stop USDC from 

 to a low of $0.869 on the Kraken exchange. 

Circle was then hit with another slew of unfortunate news over the weekend: the closure of Signature Bank resulted in its product, Signet, being closed too. This meant that Circle was no longer able to mint or redeem USDC through its Signet feature. Circle has clarified that it does not hold any USDC reserves with Signature Bank, and only uses it for transactions and settlements. 

According to an update by Circle on Mar 12, it holds $9.7 billion of its USDC reserves in cash, and $32.4 billion in short-dated government securities. Another $5.4 billion of the USDC cash reserves are held at Bank of New York Mellon Corp., and $1 billion at Customers Bank.

Circle reported that it had tried to move its reserves out of Silicon Valley Bank on Mar 9, but this wasn’t done by Friday due to the closure. It holds hope that the transfer will be settled on Mar 13. If the reserves aren’t retrieved, Circle has promised to fill the gap using internal resources, as well as external investments if necessary.

The hopeful news has caused USDC to inch closer to its peg, and as of Mar 13, 2023, its price is at $0.984.

Binance and Paxos founded BUSD to provide transactions with three important qualities: Speed, flexibility and accessibility.

Simply put, Binance USD is a fiat-backed and regulated stablecoin with the same worth as a U.S. dollar. For every Binance USD someone buys, there’s a single dollar held in reserve. As the U.S. dollar’s price fluctuates, this stablecoin’s value also rises or falls accordingly. BUSD holders can exchange their stablecoins for U.S. dollars, and vice versa. Moreover, Binance USD exists on BNB Chain and Ethereum.

Therefore, BUSD holders can exchange stablecoins between these blockchains per their requirements. BUSD also has 

 to prove that they have an equivalent amount of USD backing their USDC to reassure investors.

However, on Feb 13, 2023, it was announced that Paxos had received a Wells notice from the U.S. Securities and Exchange Commission (SEC) indicating that BUSD was considered to be an unregistered security. The New York Department of Financial Services (NYDFS) also revealed data showing that there were not enough reserves backing up the BUSD issued by Paxos, and thus 

 or released. While Paxos denied the claims, it has since ceased the issuance of BUSD and ended its partnership with Binance.

 to $0.20 on Binance following a single market sell order of $647,000. While it immediately regained its peg, it created an opportunity for arbitrage traders to purchase BUSD for under $1 on Binance and sell it on other exchanges for $1. 

As of Mar 1, 2023, more than $6 billion has been pulled out of BUSD. In the meantime, Binance has laid out plans to diversify its stablecoin away from BUSD. Binance has recently launched TrueFi perpetual contracts on its platform, and it’s minting more TUSD tokens as an attempt to meet their stablecoin needs.

This table compares the differences between the three stablecoins that account for most of the stablecoin market.

Back in May 2022, Tether started to lose its market cap against USDC, especially after 

 was depegged. On May 9, UST started to depeg and, as investors worried about the risk of USDT, they also started selling it. Since then, USDT has lost $11 billion in market cap (a drop of about 15%) as holders began exchanging it with USDC instead, along with some also redeeming USDT into USD fiat. At one point, on May 12, USDT even depegged by around 4% on Binance. However, it quickly recovered back to its peg by the end of the day, as redemptions were fully met and investors were reassured.

Due to this event, USDC’s market cap rose from $49 billion to $54 billion, an increase of about 10%. However, as of Mar 13, 2023, its market cap has decreased to about $40 billion due to the collapse of Silicon Valley Bank. Despite this, there’s no doubt that USDC has come a long way from just $4 billion in market cap at the start of 2021.

Following the events of the ban imposed on BUSD, the Paxos-issued stablecoin has now dropped in market cap, from about $23 billion in November 2022 down to $8 billion. BUSD used to rank sixth in terms of market cap, but it has now sunk to 11th place. 

USDT vs. USDC vs. BUSD: How Are They Different?

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