Ripple (XRP) is setting its sights on a piece of the market share with its USD-pegged stablecoin, inspired by Tether's (USDT) lucrative financial journey.

According to a recent article by crypto commentator Panos Mekras, Ripple's stablecoin aspirations are closely tied to Tether's financial success. This view was expressed after learning about Tether's impressive earnings in 2023, which reached approximately $6.2 billion, as reported by Maelstrom based on public records. This figure represents a substantial increase from the previous year's earnings.

Tether's profitability has sparked interest within the industry, highlighting its operational efficiency. Teddy Fusaro, Bitwise's president, noted that Tether's earnings were remarkably close to those of major financial institutions, despite having significantly fewer employees. For instance, Tether's profit was 78% of Goldman Sachs' earnings, despite the vast difference in staff numbers. This comparison underscores the financial potential within the stablecoin sector.

Ripple's Quest for Market Share with New Stablecoin

Tether's financial achievements have sparked discussions within the cryptocurrency community, demonstrating its dominance and the broader potential of the stablecoin market. Ripple, recognizing this potential, has announced plans to launch a USD-pegged stablecoin, aiming to capture a portion of the market that Tether currently leads.

Ripple's decision to enter the stablecoin market follows Tether's disclosure of significant profit gains. With Tether setting a high benchmark, Ripple aims to capitalize on the expanding demand for stablecoins, aligning with the industry's growing focus on decentralized finance (DeFi) and institutional applications.

XRP to Unveil USD-Backed Stablecoin on XRPL and Ethereum

Ripple's foray into the stablecoin market comes as the demand for dependable and secure digital currencies continues to grow. The company plans to introduce a USD-pegged stablecoin on the XRP Ledger and Ethereum platforms, demonstrating its commitment to the industry's expanding focus on DeFi and institutional applications.

Monica Long, Ripple's President, shares Mekras' views on the critical role of stablecoins in DeFi. By launching its stablecoin, Ripple aims to unlock new opportunities within this space. The company's strategic direction suggests a clear vision to establish a significant presence in the stablecoin market, capitalizing on the sector's anticipated growth.