Robinhood Markets Inc. and Revolut Ltd., two leading fintech companies, are exploring the option of entering the stablecoin market alongside Ripple. Currently, this sector is largely controlled by Tetherâs USDT. However, both companies are contemplating the launch of their own stablecoins, as per sources familiar with the talks.
Will Robinhood and Revolut Team Up with Ripple in the Stablecoin Arena?
That said, no definitive choices have been made yet, and the firms might still decide against it, according to these insiders. Tether maintains a significant hold on the stablecoin market, boasting a circulation of nearly $120 billion, which accounts for over two-thirds of the $170 billion global stablecoin market.
While other players like Circleâs USD Coin (USDC) have gained some traction, its supply stands at $36 billionâmuch less than USDTâs share. Efforts by other companies to challenge Tether have mostly fallen short. Meanwhile, Ripple is fully committed to its RLUSD stablecoin, set to launch later this year.
However, upcoming regulatory changes, especially in the European Union, could create opportunities for new entrants in the stablecoin market. The EU plans to implement new comprehensive regulations under the Markets in Crypto-Assets (MiCA) framework by year-end. These regulations might pose challenges for Tether, as crypto exchanges in the EU may need to remove stablecoins from issuers that do not possess the necessary licenses.
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Cover Image: cointelegraph.com
