USD Coin (USDC), the second largest Stablecoin in the world, has been available on the XRP Ledger since yesterday. This Ripple blockchain network makes fast and cheap transactions possible, especially on decentralized exchanges. With a market value of more than 61 billion dollars, USDC is firmly in second place, directly behind USDT from Tether.
Stablecoins are gaining importance
Ripple announced that thanks to an auto-bridging function XRP, users can use as an intermediate step when changing stablecoins. Markus Infanger, vice president of Ripplex, calls Stablecoins an important access point to crypto: “Essential for applications with real usability instead of speculation.”
The launch comes at a time when work is being done on legislation on Stablecoins in the United States. The market for these tokens, which are often linked to the value of the dollar, has since grown into a joint market value of more than 237 billion dollars.
How does Circle earn money with stablecoins
Circle and other publishers of over -co -materialized Stablecoins earn their income mainly by investing the money they receive as collateral in short -term US government bonds. The interest that these bonds produce forms the basis of their earnings model. In this way, Stablecoins are not only a technological innovation, but also an economic instrument that generates returns.
Stablecoins as a strategic weapon for the dollar
Some American policy makers see Stablecoins as a weapon in the geopolitical struggle. By making digital dollars more attractive worldwide, the US can retain its economic influence in a world that wants to be less and less dependent on the dollar.
At the same time, interest rates are on an American government bond with a term of ten years currently around 4.3 percent. This relatively high interest rate ensures that the interest charges on the US national debt, which have since risen to more than 36 trillion dollars, weigh more and more.
Source: https://newsbit.nl/usdc-gelanceerd-op-xrp-ledger-nieuwe-stap-voor-stablecoins/
