Prominent fintech companies are scouting opportunities within the profitable stablecoin industry, poised for potential entry. more to come .
According to Bloomberg, Robinhood Markets and Revolut are keen on delving into the competitive stablecoin space, joining the likes of PayPal should these plans materialize, making it one of the most lucrative battles out there.
A Robinhood spokesperson clarified that there's no immediate intention to roll out a stablecoin, even though the platform already facilitates trading in numerous digital currencies, including Circle's notable USDC.
The Next Money
Revolut While specifics remain sparse, a representative mentioned that there is an ambition to broaden their virtual currency portfolio.
Amidst the growing intrigue from top-tier companies and financial bodies toward stablecoins, PayPal made initial waves with their introduction of PayPal USD, or PYUSD.
PayPal’s PYUSD The PYUSD stablecoin already boasts an impressive $700 million in market capitalization, ranking as the fourth most significant stablecoin.
Ripple, a renowned name in the crypto realm, is advancing plans for its stablecoin, Ripple USD (RLUSD), aligning itself with top-tier market participants.
Ripple USD is undergoing meticulous testing on the XRP Ledger and Ethereum platforms as part of its garnering process towards a grand debut, with efforts centered around refining its creation and destruction processes.
Ripple's CEO, Brad Garlinghouse, has hinted at launching the eagerly awaited product in the forthcoming weeks, without specifying an exact date.
In parallel with Ripple's endeavors, BitGo, famed for Wrapped Bitcoin, eyes releasing its stablecoin called USDS by 2025, with aspirations to share a substantial chunk of its profits among community supporters.
Regulation Dynamics in the EU and Tether's Ambiguity
Stablecoins are increasingly gaining traction, especially in emerging economies where they play a pivotal role in the payments landscape. The stablecoin domain holds immense financial allure and profitability prospects. In 2023, Tether unveiled staggering net operational profits of $6.2 billion, primarily attributed to interest garnered from assets supporting USDT’s valuation. The dominant players currently secure a substantial 90% of the $170 billion landscape. The entry of newer firms might shake up this hold, particularly when considering the influence of escalating regulatory frameworks like those in Europe.
Tether and Circle The European Union’s crypto regulation, known as MiCA, provides a grounded legal blueprint for ventures in digital assets, including stablecoins. Issuers will have to align with these protocols to function legally.
Despite the hurdles, the head of Tether noted that the company is crafting strategies to cater to the EU audience, even as the full enactment of these regulations looms by end-2024, leaving Tether’s EU fate uncertain.
Adhering to MiCA's stipulations is crucial, lest exchanges are forced to delist non-compliant stablecoins like those by Tether. Some platforms have already restricted USDT functionalities.
Yet, MiCA's framework is expected to invigorate stablecoin growth. Providing a well-defined regulatory landscape ensures stability and investor confidence, key aspects for any issuer.
This legal groundwork offers new entrants a comforting assurance, potentially stirring heightened market involvement. Circle, for instance, has already secured the necessary licensing for the EU.
While USDT contends with emerging digital currency ventures and established brands alike, its longstanding presence in the market remains a significant advantage. Even as PayPal presents competition, USDT maintains a solid market valuation.
Nicholas Say hails from Ann Arbor, Michigan, has journeyed extensively, spent considerable years in Uruguay, and now resides in the Far East. His writings are prevalent on the internet, heavily focusing on tangible innovations and the evolution of smart technologies.
