The Tether community assumed the Ripple CEO made an attempt to pull USDT down to position its incoming stablecoin.
Brad Garlinghouse, Ripple CEO, has tried to tone down the tension that rose as a result of his perceived attack on Tether, the issuer of the United States dollar-pegged stablecoin USDT. He subtly clarified that his statements from the interview with Chris Vasquez of the World Class Podcast were not an attack on the stablecoin or its issuer.
Ripple to Debut US-backed Stablecoin
The Ripple CEO claimed that his words were twisted by the media and tagged it an attack on Tether. To emphasize his claims, he stated that the interview with Vasquez ended with no criticism of any form. According to Garlinghouse, his words during the podcast were that he sees Tether as a significant part of the ecosystem.
“My point was that the US govt has clearly indicated they want more control over USD-backed stablecoin issuers, and thus, Tether, as the largest player, is in their line of sight,” he explained in his latest X post.
Over time, Tether and its CEO Paolo Ardoino have faced several criticisms from different ecosystems and communities. Garlinghouse’s supposed attack on Tether comes as his firm is working to launch its stablecoin. Last month, Garlinghouse explained why his firm was venturing into the stablecoin ecosystem. He based Ripple’s expansion into the niche on the solid and comprehensive record, regulatory observance, strong balance sheet, and global network.
The potential Ripple stablecoin will be pegged to a combination of US dollar deposits, US government bonds, as well as cash equivalents in a 1-to-1 ratio. This is to ensure that it will be a stable and secure digital currency for users. In light of the perceived attack on Tether, the Tether community assumed the Ripple CEO made an attempt to pull USDT down to position its incoming stablecoin.
The Fight for Dominance
Ardoino’s comment on the Garlinghouse situation is that the Ripple executive was spreading Fear, Uncertainty, and Doubt (FUD) on the USDT stablecoin. He also thinks that the supposed attack on USDT is because Ripple plans to launch a dollar-backed stablecoin.
Amongst its counterparts, Tether boasts of being the largest stablecoin issuer with a circulating supply of over 110.8 billion USDT. Some market observers even believe that Ripple’s interest in stablecoin was fueled by the remarkable financial achievements that Tether recorded in 2023 and in Q1, 2024
Even with this level of dominance, crypto enthusiasts still believe that Ripple stands as a formidable competitor to Tether, considering that the former is also a dominant player in the crypto payment ecosystem.
The outcome would likely be known in a few months as Ripple plans to debut the stablecoin in the summer of 2024, per a statement from its CTO David Schwartz. For Ripple, this would mark a milestone for its business and a further push for its positioning in the crypto market.
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