The digital asset market is experiencing a wave of new stablecoin launches by various technology and cryptocurrency companies, and even a state, despite concerns about their limited use and chances of survival.
What happened:An article from the Financial Times report On Thursday, it revealed that the blockchain-based payments company Ripple Labslender banking circlecryptocurrency company Paxos International and Hong Kong IDA have recently revealed plans for their own stablecoins.
Banking Circle launched its Europe-pegged stablecoin, RAIN, last month, in compliance with the Markets in Cryptocurrency Assets Regulation (MiCA), the European Union (EU) regulatory framework.
Similarly, IDA raised nearly $47 million in seed funding to launch its first fiat-pegged stablecoin, HKDAwhich will be regulated in Hong Kong.
Vibe Labs, one of the largest blockchain-based companies and closely linked to the token with a capitalization of $30 billion XRP XRP/USDalso announced that it was getting close to launching its US dollar stablecoin, called Ripple USD (RLUSD).
The former president joined this trend From Donald Trump upcoming cryptocurrency firm, which has pledged to drive mass adoption of dollar-pegged stablecoins.
Leaving aside businesses, even the state of Wyoming was planning to launch a dollar-backed stablecoin in the first quarter of 2025, which would be called Wyoming's stable signing.
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Why is it important?The flurry of launches signified a growing belief that cryptocurrencies, particularly those with less volatile prices, would transform everyday consumer payments.
However, skeptics argue that most of these new stablecoins lack distinctive features to attract users from major players in the industry. Tie USDT/USD and Circle USDC/USDA senior cryptocurrency executive told the Financial Times: “The reality is that many of them will simply dry up.”
The report noted that stablecoins remained restricted for trading and were primarily used for inbound and outbound services.
“Stablecoins are a novel asset that some people find useful and others buy them simply because they like the concept of holding cash-equivalent value in a digital wallet.” Father Katzpartner in a law firm Ashurst In London, he said.
“No major bank is going to take the risk of issuing a stablecoin under a new name, an unregulated name, or a startup.”
At the time of writing, the total stablecoin market cap has surpassed $170 billion, according to CoinMarketCap, with USDT accounting for nearly 70% of the total market.
Photograph by Igor Faun on Shutterstock
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