Stablecoin Safety Checklist

Note: Information on this page is based on USD stablecoins. KRW stablecoins lack institutional frameworks, so we use global (USD) standards.

Summary

The checklist includes collateral transparency, audit reports, compliance, and issuer credibility.
Review each item carefully. Consider price stability and redemption mechanisms.
This is a complex topic and may vary based on research.

1. Collateral Transparency

Stablecoins are backed by fiat or assets. Transparency is key; asset types and custody locations must be public.

2. Audit Reports

Regular independent audits verify collateral. Reports should be recent and public. e.g. Grant Thornton audits USDC.

3. Regulatory Compliance

Compliance ensures safety. Check if the issuer is registered and follows AML/KYC. USDC is regulated in the US.

4. Issuer Credibility

Evaluate track record and finances. Circle (USDC) is highly trusted; Tether has faced controversy.

Category	USDT(Tether)	USDC(Circle)	DAI(MakerDAO)
Collateral Transparency	Past controversy, partial disclosure	Monthly reports, high transparency	Over-collateralized on-chain
Audit Reports	Past trust issues, partial audits	Monthly audits by Grant Thornton	Independent audits, on-chain verification
Regulation	CFTC fines, partial compliance	Regulated by SEC, FCA, FinCEN	Unregulated (DeFi)
Issuer Credibility	Past issues, low trust	Coinbase partner, high trust	Community-based, medium trust

Not all stablecoins are safe. Review transparency, audits, regulation, and credibility to minimize risk. Consider diversification.