Ripple CEO Brad Garlinghouse exudes optimism when discussing the future prospects of the company’s stablecoin, expressing confidence in its ability to capture a substantial portion of the stablecoin market. In a widely circulated video within the XRP community, Garlinghouse emphasized his belief in the upcoming stablecoin’s potential for growth and dominance.
Garlinghouse’s confidence stems from Ripple’s strong financial position, which ensures that the stablecoin will maintain its peg to the U.S. dollar. To illustrate this point, he referenced the recent incident involving Circle’s USDC stablecoin, which temporarily lost its peg to the dollar. Garlinghouse highlighted the challenges faced by Circle in restoring the stablecoin’s $1 peg, noting that its low balance sheet was a contributing factor.
In contrast, Garlinghouse emphasized Ripple’s advantage, stating that if Ripple had made a similar promise, USDC would have swiftly regained its $1 peg. He revealed that Ripple boasts a substantial balance sheet of $20 billion to $30 billion, which would enable it to easily restore the dollar peg of its upcoming stablecoin if necessary.
Despite the dominance of Tether (USDT) in the $161 billion stablecoin market, with a valuation of $111.95 billion, and the significant market cap of the second-largest stablecoin, USDC ($32.34 billion), Garlinghouse remains confident in Ripple’s ability to compete. He believes that the upcoming stablecoin will carve out a significant share of the market, which is projected to reach a valuation of $2.8 trillion by 2028.
It is important to note that the information presented in this article is for informational purposes only and should not be considered financial advice. The views expressed are solely those of the author and do not necessarily reflect the opinions of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses that may occur.
