In a video circulating within the XRP community, Ripple CEO Brad Garlinghouse expressed confidence in the upcoming launch of the company’s stablecoin. While the token’s name remains undisclosed, Garlinghouse believes it has the potential to become a major player in the stablecoin market, which is currently valued at over $161 billion.
This confidence stems from Ripple’s strong financial standing, according to Garlinghouse. He highlights the challenges faced by Circle, the issuer of the second-largest stablecoin USDC (USD Coin) when the token briefly lost its peg to the US dollar last year.
USDC’s de-peg, attributed to the collapse of Silicon Valley Bank (SVB) which held a significant portion of its reserves, caused the stablecoin to dip to an all-time low of $0.87. Despite Circle’s assurances of maintaining the peg and covering potential shortfalls, USDC took several days to fully recover.
Garlinghouse points to Circle’s “low balance sheet” as a reason for the slow recovery. He contrasts this with Ripple’s financial strength, boasting a balance sheet of $20 billion to $30 billion. This, according to Garlinghouse, would allow Ripple to swiftly restore a potential peg loss for its upcoming stablecoin.
This statement implies Ripple’s stablecoin could offer greater stability compared to USDC, potentially attracting users seeking a more reliable option. The market leader, Tether (USDT), currently holds a dominant position with a valuation exceeding $111 billion. USDC follows closely behind at $32.34 billion.
Experts anticipate Ripple’s stablecoin, launching on both XRP Ledger (XRPL) and Ethereum networks later this year, will face stiff competition from established players. However, Garlinghouse remains optimistic about capturing a significant share of the market, which is projected to reach a staggering $2.8 trillion by 2028.
Also Read: Ripple vs. SEC Heats Up: Confidential Docs, XRP Breakout Predictions, And A Price Stuck In Limbo
With Ripple’s financial backing and the ever-expanding stablecoin landscape, the upcoming launch is certain to stir excitement within the cryptocurrency community. Whether it can dethrone USDC or challenge Tether’s dominance remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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