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How Tether plans to keep its dominance and beat Ripple

A week ago Ripple Labs announced they are entering the stablecoin market with their new stablecoin RLUSD.

By Mike Hesp
• 2 min read
How Tether plans to keep its dominance and beat Ripple

A week ago Ripple Labs announced that they are entering the stablecoin market with their new stablecoin RLUSD. This puts them in competition with the established dollar-stablecoins from Tether (USDT) and Circle (USDC).

Despite this new competition, Paolo Ardoino, Tether's CEO, was optimistic during Fintech Week in Washington DC. He emphasized the importance of communication and transparency and said Tether will even strengthen these efforts.

Ardoino explained that the main goal of a stablecoin issuer is to guarantee that users can get their money back. He said this wouldn't be a problem for Tether, since their reserves are 104% collateralized, which provides a quality guarantee.

Brad Garlinghouse, CEO of Ripple, recently stated that with a strong focus on regulatory compliance, their new stablecoin is paving the way to become the gold standard for stablecoins in business.

Despite criticism and regulatory uncertainties, Tether remains the third largest cryptocurrency by market cap at around $120 billion. The new MiCA regulation in the European Union could pose a challenge.

Recently, Tether came under fire again from U.S. authorities after it was revealed that USDT was used by a drug cartel to smuggle cocaine from Colombia into the U.S. and Canada.

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