In a recent post on X, crypto author Panos Mekras suggested that Ripple’s entry into the stablecoin market is driven by its desire to compete with Tether, which recorded a significant profit of $6.2 billion in 2023. Mekras made this observation after Tether’s estimated earnings for last year were revealed.
Teddy Fusaro, the president of Bitwise, drew attention to Tether’s impressive earnings in 2023, citing data compiled by analysts at Maelstrom based on publicly available financial records. According to the report, Tether’s net income for 2023 was $6,175,826,809, representing a 128.65% increase from the previous year’s $2.7 billion.
Fusaro highlighted Tether’s achievement by comparing its earnings with those of major American financial institutions like Goldman Sachs and Morgan Stanley. He pointed out that Tether’s $6.2 billion profit is approximately 78% of Goldman Sachs’ $7.9 billion earnings in 2023, despite Tether having only 100 employees compared to Goldman Sachs’ 48,500. Similarly, Tether’s earnings account for 72% of Morgan Stanley’s $8.53 billion earnings, with 82,000 employees.
Mekras responded to the data by stating that Tether’s staggering earnings in 2023 are one of the reasons why Ripple is venturing into the stablecoin market. He further argued that if Ripple executes its strategy effectively, it could capture a significant market share and generate substantial profits. Mekras emphasized the importance of stablecoins in the crypto economy and DeFi world.
Ripple recently announced its plans to launch a USD stablecoin on the XRPL, citing the growth potential in the stablecoin market. The company believes the market will be valued at nearly $3 trillion in four years, prompting its pivot to the space. Ripple’s President, Monica Long, agreed with Mekras’ perspective on the significance of stablecoins in decentralized finance. She emphasized the importance of issuing USD-backed stablecoins on XRPL and Ethereum platforms to unlock new opportunities for DeFi and institutional applications.
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