John Deaton, a renowned Ripple advocate and CryptoLaw founder, has taken to X (formerly Twitter) to express his thoughts on the launch of the world’s second-largest stablecoin by market capitalization, USDC, on the XRP Ledger (XRPL).
Circle vs. Ripple: Stablecoin battle in play
While the move has created a buzz across the broad crypto space, it offers businesses and developers the opportunity to mint and redeem USDC tokens on the XRP Ledger seamlessly.
The debut of USDC on XRPL, which has sparked excitement across the XRP ecosystem, has been applauded by John Deaton as he confirms the positive implications the development poses to XRPL and the broader XRP ecosystem.
John Deaton has made these remarks in response to an analysis made by an X user who considers the move as a challenge from Circle to compete head-to-head with Ripple for stablecoin dominance on the XRPL.
While the challenge seems to put each firm’s efficiency and infrastructure to the test, there is also a positive side to it as it propels XRPL for further adoption, thereby fueling the growth of the broader XRP ecosystem.
Meanwhile, there are speculations that Circle has made the move to leverage Ripple’s groundbreaking foothold in global payments infrastructure and the growing institutional use of XRPL. There are debates that the launch is an attempt by Circle to remain relevant on a high-performance blockchain, positioning it for further growth.
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Following previous reports, it appears that the battle between Ripple and Circle has been long coming, as it was previously rumored that Ripple was attempting to buy Circle for $5 billion. This was no longer the case, as it was reported that the offer was eventually rejected by the USDC issuer for being too low.
Nonetheless, the X user further emphasized that the debut of USDC on XRPL poses more DeFi exposure for the network, noting that it could significantly boost the total value of assets locked (TVL) on the XRPL. Usually, a positive movement in the TVL of a network often positions the native token for future price ascents.
With this development, XRPL has become a major contender in the stablecoin ecosystem, rivaling USDT issuer Tether.