When Stability Matters: Why All USDX Are Not the Same
The stablecoin market has matured — but not all stability is created equal. Over the past few years, we’ve seen a growing spectrum of designs: fiat-backed, crypto-collateralised, algorithmic, and synthetic. Each promises to maintain a 1:1 peg to the U.S. dollar. Each does it differently.
This week, yet again another synthetic stablecoins lost its peg to the US Dollar by more than 60% - named USDX by Stable Labs and not issued, managed, or affiliated in any way with HT Digital Assets or Hex Trust. The event has sparked fresh questions about how stablecoins are structured and what truly keeps them stable.
Let’s unpack that.
The Two Main Stablecoin Architectures
At a high level, today’s stablecoins fall into two broad categories: Fiat-backed and Synthetic/Algorithmic.
The differences go deeper than just collateral — they define how risk, transparency, and trust are managed.
Category
Collateral Type
Backing Mechanism
Peg Stability
Transparency
Risk Profile
Fiat-Backed Stablecoins
Cash & short-term U.S. Treasuries
1:1 reserves held with regulated financial institutions
High — redeemable for USD
Audited, attested reserves
Lower, mostly counterparty custody or regulatory risk
Synthetic or Algorithmic Stablecoins
Crypto-collateral or on-chain algorithms
Peg maintained through incentives and arbitrage logic
Variable — dependent on market confidence
Limited on-chain data, no fiat attestation
Medium to High due to market conditions, technology design and liquidity risk.
Synthetic designs may be innovative, but they rely on reflexive market confidence.
When sentiment weakens, the mechanism becomes the vulnerability.
Fiat-backed stablecoins like USDX by HT Digital Assets are built on verifiable reserves and regulated custody. Each token represents a real U.S. dollar or Treasury instrument — held by regulated financial institutions, audited, and redeemable 1-1 for USD on a bank account.
Trust & Professionalism: The Real Collateral
The stablecoin that depegged this week didn’t fail because of bad code — it failed because of misplaced trust in a pegging algorithm that was too sensitive to the liquidity conditions on markets it traded.
USDX by HT Digital Assets, part of the Hex Trust Group, is engineered differently. It’s issued under an institutional grade framework, fully backed by fiat reserves held with licensed financial institutions. Each token corresponds to USD cash or short-term US Treasuries that can be verified, audited, and redeemed.
To back this up, we provide real-time updates of our Minted Assets and Reserve Holdings on our website.
Real Returns Come From Real Markets
Beyond its stability and reliability for the purpose of digital treasury, fast payment and easy cross-border transfers, USDX holders can earn returns via two professionally managed products: the T-Pool and the X-Pool.
T-Pool channels reserves into short-term U.S. Treasuries, delivering consistent, transparent returns based on US Government bonds.
X-Pool captures delta-neutral arbitrage spreads across major exchanges using institutional-grade trading systems, managed and executed by an institutional investment manager.
The returns generated in these pools aren’t “printed” or made up by marketing rewards — it’s earned from real market activity, managed by professional investment teams under strict risk frameworks.
Infrastructure, Not Experimentation
As stablecoins become the settlement layer of digital finance, the bar must rise. Transparency and clarity are non-negotiable in digital asset markets — and we remain committed to both. USDX is built to the same operational, legal, and transparency standards that govern traditional finance — bringing stable value into the on-chain economy with the reliability of a regulated financial product.
Questions? Contact us!
If you have any questions or would like to know more about USDX, the X-Pool or the T-Pool, please contact us via Email or reach out to your Hex Trust Relationship Manager.