According to U.Today, Gabor Gurbacs, a strategic advisor at Tether and fund manager at VanEck, has expressed his views on Ripple's upcoming launch of a USD-backed stablecoin. Gurbacs stated that despite the new competition, Tether's USDT is expected to maintain its dominance in the stablecoin market. He cited several reasons for this prediction, including the Tether team's 'right principles and history', its ability to 'support real use-cases that the market wants', high liquidity, the 'right geo-focus', and the 'right design'.
Gurbacs also highlighted the importance of small transaction fees in the crypto market. This comment may be a reference to Ripple's plan to build its stablecoin on the Ethereum chain, which is known for its fluctuating fee levels. Gurbacs' comments were prompted by the recent announcement of Ripple's intention to launch a rival to USDT.
Ripple CEO Brad Garlinghouse has stated that the launch of a stablecoin is a logical progression for the company. The new product will be built on both the XRP Ledger and the Ethereum chain. Garlinghouse emphasized Ripple Labs' years of experience, regulatory footprint, strong balance sheet, and extensive global payments network as key assets for this initiative. He also stated that the future stablecoin and XRP will be used in tandem to optimize crypto-enabled payments.
According to a recent Twitter thread by Ripple, the forthcoming stablecoin will be backed not only by USD but also by U.S. government bonds and cash equivalents. The company has also pledged to provide 'monthly third-party attestations' to ensure trust and reliability. Ripple's entry into the stablecoin market is expected to create more use cases, liquidity, and opportunities for both developers and users.