The world of USD-pegged stablecoins is on fire, inching closer to a staggering $165 billion milestone! Fresh faces like Ethena’s USDe and heavyweights such as PayPal and Ripple are shaking things up in this fiercely competitive arena. Ripple, especially, is aiming for the stars, foreseeing a jaw-dropping $2.8 trillion market by 2028.
Brace yourselves, because the stablecoin race is just getting started and it’s heating up fast!
Legal expert and staunch XRP advocate, Fred Rispoli, recently shed light on Ripple’s strategic move to introduce a dollar-backed stablecoin in the United States later this year. According to Rispoli, Ripple’s main aim behind this move is to simplify the use of its ODL solution, now known as Ripple Payments, for American customers engaging in cross-border transactions.
Rispoli’s insights suggest a significant shift in Ripple’s approach. Instead of relying solely on XRP, American clients will soon have the option to use Ripple’s upcoming stablecoin for transactions through ODL. This shift comes amidst Ripple’s ongoing legal battle with the SEC, where the company recently contested the SEC’s hefty fine proposal.
Also Read: Ripple vs SEC Heats Up: ODL Sales Don’t Qualify as Investments, Firm Argues
Holding Steady!
Analyzing Ripple’s latest legal filing, Rispoli expressed confidence that Ripple is well-positioned to win in the remedies stage of the lawsuit. However, he acknowledged potential challenges that could block Ripple’s success.
Faced with regulatory hurdles, Ripple has strategically moved most of its ODL operations offshore, notably to Singapore, where it obtained preliminary approval last year. However, to serve its American clientele, Ripple is set to roll out a stablecoin, offering users in the region an alternative to XRP for payments.
Traditionally, XRP served as the bridge asset for ODL transactions, facilitating smooth cross-border settlements between fiat currencies. However, Ripple’s entry into stablecoins aims to diversify payment options for its American ODL clients. Initially launching on the XRP Ledger and Ethereum, the stablecoin will later integrate into other blockchains.
Also Check Out: XRP Leads Altcoin Surge as Ripple Prepares for Potential SEC Lawsuit Victory
With this strategic move, Ripple aims to tap into the vast $150 billion stablecoin market, attracting institutional players and the growing DeFi sector.
The USD-pegged stablecoin realm, long dominated by giants like Tether’s USDT and Circle’s USDC, is experiencing a surge in both supply and diversity. Despite Tether’s dominant 70% market share, according to DeFiLlama, Ripple aims to carve out its niche with a “compliance-first” stablecoin, aiming for a slice of the market pie.
It’s a Race to the Top!
To retain its institutional and governmental clientele, Ripple acknowledges the need for a compatible stablecoin solution. However, the competition in the compliance-first stablecoin space is fierce. While Ripple unveils its stablecoin, Agora enters the arena with its fully collateralized counterpart, supported by Van Eck.
Will Ripple’s stablecoin shake up the market? Share your thoughts.
XRP, the native token of Ripple Labs, is gaining massive attention from long-term holders despite…
The crypto market has recently experienced a vast downturn, with most important projects such as…
The US markets are experiencing one of the massive pullbacks, with major stocks plunging by…
PEPE hopped its way to a $3.8 billion market cap, but its reign as a…
Ripple’s (XRP) recent rally from $2.00 to $2.20 has sparked excitement among cryptocurrency enthusiasts. This…
The crypto circus has a new ringmaster: Influencer Pepe (INPEPE). This Pepe-the-Frog-inspired token is making…
