Robinhood, Revolut To Join Ripple in $170B Stablecoin Market
The post Robinhood, Revolut To Join Ripple in $170B Stablecoin Market appeared on BitcoinEthereumNews.com.
Robinhood Markets Inc. and Revolut Ltd., two of the prominent fintech companies, are weighing the possibility of entering the stablecoin market alongside Ripple. Currently, the sector dominated by Tether’s USDT. However, both firms are considering issuing their own stablecoins, according to individuals familiar with the discussions. Will Robinhood, Revolut Join Ripple in the Stablecoin Game? Nonetheless, no final decisions have been made, and the companies could still opt out, said these sources. Tether’s dominance in the stablecoin space is substantial. With a circulation of nearly $120 billion, Tether’s USDT holds more than two-thirds of the $170 billion global stablecoin market. While other contenders, such as Circle’s USD Coin (USDC), have made inroads, the stablecoin supply stands at $36 billion—far smaller than USDT’s market share. Attempts by other firms to rival Tether have largely been unsuccessful. Nonetheless, Ripple is going all-in with its RLUSD stablecoin, which will be launched later this year. However, regulatory changes on the horizon, particularly in the European Union, may provide an opening for new players in the stablecoin market. The EU is set to adopt new comprehensive regulations under the Markets in Crypto-Assets (MiCA) framework by the end of the year. These rules could present challenges for Tether, as crypto exchanges operating within the EU may be required to delist stablecoins from issuers that lack the appropriate licenses. Circle, the issuer of USDC, has already obtained the necessary licensing for the European market. In addition, the company confidentially filed for an initial public offering (IPO) in the United States earlier this year. Hence, Circle’s readiness for regulatory compliance in the EU contrasts with Tether. Moreover, Tether CEO Paolo Ardoino, has expressed concerns about the risks posed by these regulations. “If a stablecoin issuer were to face mass redemptions, it could lead to significant market instability,” Ardoino…
Filed under: News - @ September 26, 2024 7:25 pm