Ripple’s stablecoin RLUSD could take a substantial European market share off Tether’s USDT as the former navigate regulatory waters. Speculations have swarmed the crypto space on the status of USDT in Europe after the rollout of the Markets in Crypto Asset (MiCA) regulation. The race for stablecoin dominance remains competitive as new tokens joined the market last year. However, USDT remains the largest stablecoin by volume and the fourth largest crypto asset by market cap. Crypto Analyst Lauds RLUSD’s Growth In a new piece, digital asset trader Maartum expressed optimism for RLUSD to lead the post-MiCA era in Europe. Launched last year, the asset has garnered adoption across institutional and retail markets, detailing the fundamentals of Ripple with more inroads expected. On the XRP Ledger, transactions are in excess of 33,900, while Ethereum numbers stand at 1,690. This growing transaction volume, coupled with other factors, has sparked institutional interest in the asset. RLUSD’s focus on compliance is a major advantage since the flag off of MiCA. On the other hand, USDT faces regulatory headwinds in Europe following MiCA. Last year, Coinbase delisted the asset in the continent alongside other crypto assets citing regulatory concerns. “ Based on the latest information, we currently expect we will have to restrict services for the following assets, USDT, PAX, PYUSD, GUSD, GYEN, and DAI, (together, the MiCA restricted assets.) We regularly review the assets we make available to customers on our platform to ensure we are meeting regulatory requirements and will access re-enabling services for stablecoins that achieve MiCA compliance at a later date. RLUSD to Capitalize on Institutional Investors Reports are circulating that Tether doesn’t have the e-money license needed to operate within the jurisdiction. According to Maartum, delisting Tether gives room for RLUSD to attract more adoption. Some crypto users argue that Ripple’s debacle with the US Securities and Exchange Commission (SEC) serves as a guiding principle for the company in future products. Stablecoins are important to institutional clients because they serve as gateway assets to the market. This is based on its underlying asset, unlike other cryptos that are riddled with high volatility. These investors can spark a new phase of investment for stablecoins as the wider market’s numbers grow. Last year, the influx of institutional investors pushed the crypto market cap above $3 trillion, with Bitcoin breaking multiple all-time highs. A similar trajectory was also recorded in Ethereum and other altcoins.
