Stablecoin crucial to blockchain legitimacy, says ZachXBT
Update (March 3, 12:50 pm UTC): We’ve updated this article to include comments from Frederik Gregaard, CEO of the Cardano Foundation.
Crypto security expert and Paradigm advisor ZachXBT recently highlighted that tracking the circulation of stablecoins from major players like Circle, Tether, and Paxos could be a crucial way to determine how legitimate blockchain networks really are.
His perspective comes on the heels of US President Donald Trump’s announcement on March 2nd. Trump stated that certain digital assets would be incorporated into the nation’s strategic crypto reserves, specifically naming Bitcoin
, Ether
, XRP , Solana and Cardano
as the chosen assets for these reserves.
Expanding on this, on March 3rd, ZachXBT suggested that a significant presence of stablecoins from leading issuers like Circle, Tether, and Paxos is a strong signal of a blockchain’s legitimacy. He pointed out that currently, neither Cardano nor XRP Ledger boast a substantial supply of these major stablecoins.
Further elaborating on his point in another statement, he reasoned that if top stablecoin issuers saw genuine “value to be gained” on these blockchains, they would have already integrated their offerings into those networks.
Source: ZachXBT
Stablecoin integration is “just one metric”
Responding to these points, Frederik Gregaard, CEO of the Cardano Foundation, shared his insights with Cointelegraph, suggesting that the crypto industry needs to look beyond “simplistic ways to measure legitimacy.” He argued that while stablecoin integration is a factor, it’s just one piece of the puzzle when assessing a blockchain’s adoption and usefulness:
“True legitimacy comes from a wider set of core strengths, including strong security, decentralization, sustainability, active development, real-world applications, and a thriving community.”
Gregaard explained that the Cardano Foundation is focused on building robust infrastructure capable of supporting truly global financial systems. He emphasized to Cointelegraph that their ecosystem is prioritizing technical excellence, security, and the ability to scale effectively. As Cardano’s capabilities grow, he anticipates that major stablecoin issuers will naturally become more interested in the network.
“We believe as transaction rates on Cardano increase, and as our network’s capabilities become even more powerful, we will see growing interest from major stablecoin issuers. This increased interest will be a natural reflection of the Cardano blockchain’s increasing maturity,” Gregaard stated confidently.
Gregaard also highlighted that even though stablecoins aren’t directly created on Cardano, established options like Tether’s
and USDC can still be utilized within the Cardano ecosystem thanks to bridges like Wanchain Bridge.
Looking forward, he affirmed that the foundation is “open to working together” with major stablecoin issuers and is actively looking for ways to attract new stablecoins to the Cardano ecosystem.
Chris Larsen-linked addresses hold over $7 billion in XRP
In a separate observation shared on his official Telegram channel, ZachXBT also drew attention to dormant wallet addresses associated with Ripple co-founder Chris Larsen. These wallets apparently still hold a substantial 2.7 billion XRP. With XRP currently valued at $2.64, these holdings amount to a staggering $7.12 billion.
He noted that these addresses had moved around $109 million worth of XRP to exchanges in January, hinting at a potential ongoing sell-off of this large XRP stash over time.
However, he also pointed out that several of these addresses have remained inactive for six to seven years. This dormancy has sparked speculation that Larsen might have lost access to these funds or possibly transferred them back in 2013.
Adding another layer to the story, on January 31, 2024, ZachXBT had previously reported that Larsen was the victim of a hack, losing 213 million XRP, then valued at around $112.5 million.
Cointelegraph reached out to Ripple for their comments on this situation but had not received a response by the time of publication.
Related: How stablecoins improve US dollar utility — Paxos CEO
Stablecoins in the XRPL and Cardano networks
While it’s true that major stablecoin issuers haven’t yet established themselves on the XRPL or Cardano blockchains, it’s important to recognize that both networks do have stablecoins operating within their respective ecosystems.
For instance, on December 17, 2024, Ripple’s own stablecoin, RLUSD, became available for trading on platforms like Uphold, MoonPay, Archax, and CoinMENA. This followed the New York Department of Financial Services’ approval of the stablecoin’s launch on December 10th. Adding to this momentum, on January 7th, Ripple’s president, Monica Long, announced that RLUSD would soon be listed on even more major exchanges.
Cardano, too, has its own stablecoin solutions. Back in 2022, Cardano introduced Djed (DJED), a stablecoin designed to be overcollateralized with ADA and utilizing Shen (SHEN) as its reserve currency. According to CoinGecko data, Djed currently has a market capitalization of $4 million.
Further expanding its stablecoin options, Cardano integrated the fiat-backed stablecoin USDM in 2024. The launch of USDM on March 18th was met with considerable enthusiasm from the Cardano community, with many viewing it as a significant “milestone” for the network.
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