Paxos vs Tether

How Paxos vs Tether compare on our ratings, stablecoin specs, funding, pros and cons.

Paxos4.3/5

Tether4.0/5

Feature	Paxos Visit	Tether Visit
Ratings
Our score	4.3/5	4.0/5
User rating	No reviews yet	No reviews yet
Reserves & transparency	4.5	4.5
Peg stability	4.5	4.0
Regulation	5.0	2.5
Liquidity & chains	3.5	5.0
Redemption	3.5	3.5
Specs
Tickers	USDP, USDG, PYUSD, PAXG	USDT, EURT, XAUT
Pegged to	US dollar	US dollar
Backing	Cash & treasuries	Cash & treasuries
Yield-bearing	No	No
Regulated issuer	Yes	No
Licenses & charters	National Trust Bank Charter (OCC), Limited Purpose Trust Charter (NYDFS), Major Payment Institution (MAS), Electronic Money Institution (FIN-FSA)	Not disclosed
Supply / market cap	Not disclosed	>$90 billion on Tron alone
Chains	Ethereum, Solana, Arbitrum One, Polygon PoS, Avalanche, Ink, Mantle, Robinhood Chain, X Layer, Stellar	Tron, Ethereum, Solana, Avalanche, Polygon, Celo, Near, Tezos, Algorand, EOS, Liquid Network, Omni
Reserve reports	Monthly reserve reports conducted by KPMG LLP and previously WithumSmith+Brown, PC	Quarterly BDO Italia attestations and KPMG US financial audit
Redemption terms	1:1 direct fiat redemption via Fedwire, SWIFT, and CUBIX for verified institutional and enterprise platform accounts	Not disclosed
Issuer can freeze tokens	Yes	Yes
Company
Founded	2012	2014
Headquarters	United States	El Salvador
Investors	Declaration Partners, Founders Fund, PayPal Ventures	Cantor Fitzgerald
Strengths and weaknesses
Pros	National trust bank oversight from the OCC USDP and PYUSD attestations issued by KPMG from February 2025 USDG supports seven listed networks Stablecoins are backed 1:1 under Paxos's stated model	Over $90 billion in liquidity on the Tron network alone Completed a full independent US GAAP financial statement audit by KPMG U.S Maintained a reserve surplus over liabilities of $6.814 billion at year-end 2025 Supported across virtually every major centralized exchange and trading pair
Cons	Redemption depends on eligibility and Paxos onboarding controls Stablecoin access varies by token and blockchain BUSD withdrawals are no longer available on the Paxos Platform Issuer controls and reserve-custody arrangements create freeze and redemption risks	European spot trading pairs delisted under EU MiCA regulatory requirements Issuer retains smart contract authority to freeze token balances arbitrarily CFTC found reserves were fully backed on only 27.6% of days in 2016-2018 No direct yield paid to retail stablecoin token holders
Best for	Businesses issuing stablecoins, Institutional payment platforms, Developers building stablecoin integrations	High-frequency crypto exchange traders, Cross-border transfer recipients outside the EU, Tron network settlement users

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