Panos Mekras, a well-known writer in the cryptocurrency industry, recently proposed that Ripple’s entry into the stablecoin market is aimed at competing with Tether, the largest stablecoin issuer, which reportedly recorded a profit of $6.2 billion in 2023. Mekras shared his perspective on X, a popular platform for crypto enthusiasts, after learning about Tether’s estimated earnings for the previous year.
Teddy Fusaro, the president of Bitwise, drew attention to Tether’s impressive earnings by referring to a report compiled by analysts at Maelstrom, who based their findings on publicly available financial records. According to the report, Tether’s net income for 2023 amounted to approximately $6.2 billion, marking a significant increase of 128.65% compared to the previous year’s earnings of $2.7 billion.
Fusaro underscored Tether’s remarkable achievement by comparing its profits with those of major American financial giants like Goldman Sachs and Morgan Stanley. He highlighted that Tether’s $6.2 billion profit is equivalent to approximately 78% of Goldman Sachs’ $7.9 billion earnings in 2023, despite the fact that Tether only has 100 employees, whereas Goldman Sachs employs a staggering 48,500 individuals. Similarly, Tether’s earnings make up 72% of Morgan Stanley’s $8.53 billion earnings, with a workforce of 82,000 employees.
In light of this data, Mekras suggested that Tether’s extraordinary earnings in 2023 serve as another reason why Ripple is venturing into the stablecoin market. He further stated that if Ripple executes its strategy effectively, it has the potential to capture a significant share of the market and generate substantial profits. Mekras stressed the importance of stablecoins in the crypto economy and the world of decentralized finance (DeFi).
Ripple recently announced its plan to launch a USD stablecoin on the XRPL (XRP Ledger), highlighting the growth opportunities in the stablecoin landscape. The company estimated that the market would be worth nearly $3 trillion within the next four years, which is why it decided to pivot to this space. Monica Long, Ripple’s President, echoed Mekras’ sentiments about the significance of stablecoins in decentralized finance. Long emphasized that issuing USD-backed stablecoins on the XRPL and Ethereum platforms will play a crucial role in unlocking new opportunities for DeFi and institutional applications.
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