One of the biggest announcements for the digital asset market has been Ripple’s decision to launch a stablecoin later this year. Indeed, the company is set to enter the market with a US Dollar-pegged asset that is hoping to compete with the overarching industry. Yet, some digital asset participants have questioned what a Ripple stablecoin means for XRP.
Specifically, the market has been concerned with what the overall presence of a stablecoin option would mean for XRP’s place within the Ripple ecosystem. Subsequently, XRP has been a necessity for Ripple regarding cross-border payments. Now, the community is concerned as to whether or not this impending asset could take its place in those operational facets.
Also Read: Ripple: Will XRP Break Past Its Consolidation Phase To Hit $1 Post Bitcoin Halving?
What’s to Come for XRP When Ripple Stablecoin Arrives?
In 2024, Ripple (XRP) has emerged as one of the market’s most interesting assets. Although it has not performed as well as some of its counterparts, its overall importance to the industry and the company’s ongoing litigation with the US Securities and Exchange Commission (SEC) have maintained optimism that it could turn around soon.
However, worry surrounding the asset has emerged following news from the company that arrived yesterday. Indeed, Ripple has created some worry about its newly announced stablecoin, and what it could mean for XRP. As many had expressed worry, crypto researcher Krippenreiter took to X (formerly Twitter) to discuss some of the concerns.
Also Read: Ripple Stablecoin News Drives XRP Volume 32% as Price Reacts
specifically, Krippenreiter highlighted the inherent differences between both XRP and stablecoins. Within that sentiment, he noted that XRP will maintain its value within the Ripple ecosystem because of these differences. Primarily, through the neutrality of the two assets.
Stablecoins are unable to hold neutrality due to the issuer and jurisdiction for where it operates. Alternatively, XRP is not adherent to the same fundamental issues. It is a globally neutral asset that is connected to the company’s decentralized ledger, XRPL.
Ultimately, these differences provide the key reasoning as to why XRP’s elimination is not a true cause for concern. Indeed, how the assets operate shows that Ripple is merely seeking to capitalize on the $150 billion stablecoin market. Moreover, its success in other facets shows that it could do a lot of good by entering the space.
Credit: Source link
