Ripple’s decision to launch its own stablecoin could bring more credibility to the stablecoin market, according to Tether CEO Paolo Ardoino. In an exclusive interview with Cointelegraph at the Paris Blockchain Week, Ardoino expressed the need for healthy competition among major players in the stablecoin industry to gain recognition from regulators. He emphasized the importance of having multiple credible players in the market to reflect the growing significance of stablecoins. Ardoino also mentioned that Ripple’s plan to introduce a stablecoin later this year indicates the potential for more players to offer legitimate fiat-backed tokens. Tether currently leads the stablecoin market with a market capitalization of $108 billion, followed by USD Coin at $32 billion. Ardoino attributed the growing adoption of stablecoins to inflation and devaluation of national currencies in countries like Argentina, Turkey, and Venezuela. He pointed out that the accessibility of digital wallets allows more people to save in digital currencies like USDT and USDC, especially in regions where many remain unbanked. Ardoino stated that USDT is overcollateralized by 106% and Tether aims to hold 100% reserves in U.S. Treasury bills, with an estimated $90 billion in Treasury bonds.
Tether CEO emphasizes importance of stablecoin competition in regulatory engagement