Stablecoin security rankings released: USDT at the top, followed closely by USDC.

[Coin World] As the adoption of stablecoins becomes increasingly mainstream, the associated security risks are also on the rise. Which tokens are leading in terms of security? In the first half of 2025, the use cases for stablecoins surged, with monthly settlement volume rising 43% to $1.39 trillion. According to security firms, this rapid growth in adoption masks the widening gaps in security posture, compliance, and operational risks that still need to be addressed by the community. Therefore, the company managed to rank the top fiat-backed tokens from the perspective of security and risk. Six rating frameworks assess each token based on factors such as operational resilience, governance strength, fundamental health, code security, market dynamics, and community trust.

According to this framework, Tether's USDT ranks first with a total score of 94.72. The security company emphasized the decision to increase USDT's circulation from $138 billion to $154 billion in the first half of 2025. In second place is Circle's USDC, with a score of 93.37. After obtaining the MiCA license and completing its initial public offering, Circle's Token supply increased from $41 billion to $61 billion. Although it still slightly lags behind Tether, it has been referred to as the "fastest-growing" major stablecoin.

Ranked third is PYUSD, jointly issued by PayPal and Paxos, scoring 91.47. The market capitalization of this token doubled in the first half of 2025. The latest developments for this token include expansion to Solana and Arbitrum as well as a rewards program. Ranked fourth is Sky's USDS, scoring 90.09. Rebranding DAI to Sky helps to expand this token across multiple chains. Since its launch on Solana, it has evolved into the fifth largest stablecoin. Ripple's RLUSD ranks fifth with a score of 89.89. Although it still falls short of USDT and USDC in terms of supply and security mechanisms, the company notes that there have been no security incidents since the token's launch.

Other notable tokens mentioned among the top 10 include First Digital USD, Paxos' USDG, Ethena's USDe, and USDtb, as well as World Liberty Financial's own USD1. According to data from a blockchain security company, there have been as many as 344 cryptocurrency security incidents in the past year. These incidents resulted in the theft of $2.47 billion worth of crypto assets across the industry. Although these incidents are not always directly related to stablecoins, they are often the first to be targeted compared to regular tokens.

For example, the price of First Digital USD plummeted to $0.76 due to market rumors about the safety of its reserves. It can only restore its value of $1.00 after the issuer discloses audited holdings to prove that its reserves are safe. This case illustrates how easily things can collapse in the realm of stablecoins. Due to the nature of tokens pegged to fiat currencies, their reserves are considered sacred, which is different from other tokens. A single misstep could lead to a decline in the 1:1 ratio supported by real currency and result in the collapse of the token.

The report shows that vulnerabilities in the cryptocurrency space, such as hacking attacks, death spirals, and price decoupling, are mainly caused by operational failures rather than technical flaws in the system. According to the study, the vulnerabilities in stablecoins are responsible for most of the losses in the system of major assets.