Surge in Stablecoin Launches: Ripple, Banking Circle, and Wyoming Set to Enter the Market

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As of September 6, 2024, the digital assets market is buzzing with new stablecoin launches. Companies like Ripple Labs, Banking Circle, Paxos International, and Hong Kong's IDA are making moves, despite some concerns about their limited use and long-term viability.

Banking Circle recently launched its Euro-pegged stablecoin, EURI. This coin complies with the EU’s Markets in Crypto Assets Regulation (MiCA). Meanwhile, IDA raised nearly $47 million to launch its fiat-referenced stablecoin, HKDA, which will be regulated in Hong Kong.

Ripple Labs, a major player in the blockchain space, is getting ready to launch its U.S. dollar stablecoin, Ripple USD (RLUSD). Even former President Donald Trump is entering the crypto scene with plans to promote dollar-pegged stablecoins.

Interestingly, the state of Wyoming plans to introduce its own dollar-backed stablecoin, called the Wyoming Stable Token, in the first quarter of 2025.

This surge in stablecoin launches shows a growing belief that cryptocurrencies, especially those with stable prices, can change the way we make everyday payments. However, some skeptics argue that many of these new stablecoins don’t offer anything unique to compete with well-established names like Tether and Circle.

As one senior cryptocurrency executive put it, “The reality is a lot of them are just going to burn out.” The report also highlights that stablecoins mainly serve as tools for trading, primarily used for entering and exiting positions.

“Stablecoins are a novelty asset that some find useful,” said Etay Katz, a partner at Ashurst in London. “Some people buy them simply because they like the idea of having a cash-equivalent value in a digital wallet.” He added, “No major bank is going to take a risk on a new, unregulated stablecoin issuer.”

Currently, the total market capitalization of stablecoins has exceeded $170 billion, with Tether holding nearly 70% of that market share, according to CoinMarketCap.

Market News and Data are provided by Benzinga APIs.