[Experts believe that the main reason why Ripple enters the stablecoin market]
Mekras recently weighed in on the X platform, a move that comes on the heels of Tether revealing its stunning 2023 gains. Bitwise President Teddy Fusaro focused on Tether’s net income of $6,175,826,809 (approximately $6.2 billion) for the year, which represented a 128.65% increase from the previous year’s $2.7 billion, according to a Maelstrom analyst’s analysis of public financial records.
Fusaro compared Tether's achievements to financial giants such as Goldman Sachs and Morgan Stanley, noting that Tether's $6.2 billion in profits with just 100 employees accounted for approximately 78% of Goldman Sachs' $7.9 billion and Morgan Stanley's $8.53 billion in earnings, respectively. 72%, while the latter two have 48,500 and 82,000 employees respectively.
Furthermore, Mekras emphasized that Tether’s outstanding performance prompted Ripple to consider entering the stablecoin market. Mekras believes that stablecoins play a key role in the crypto economy and decentralized finance (DeFi), and if Ripple can effectively implement its strategy, it will occupy a significant market share and create significant profits.
Ripple’s announcement last week that it will issue a U.S. dollar-backed stablecoin on its XRP Ledger (XRPL) highlights the opportunity for the rapid growth of the stablecoin market. Ripple expects the market to be worth nearly $3 trillion within four years. Ripple President Monica Long also agreed on the importance of stablecoins in unlocking new opportunities for DeFi and institutional applications, and highlighted the strategy of issuing USD-backed stablecoins on the XRPL and Ethereum platforms.
