Crypto author Panos Mekras recently suggested that part of Ripple’s entry into the stablecoin market may be to rival a significant share of the $6.2 billion profit USDT issuer Tether recorded in 2023.
Mekras expressed this perspective in a recent post on X following a revelation of Tether’s estimated earnings for last year.
Teddy Fusaro, the president of Bitwise, called attention to Tether’s 2023 estimated earnings, citing records put together by analysts at Maelstrom based on publicly available financial records.
Per the report, Tether witnessed a net income of $6,175,826,809 (approx $6.2 billion) for 2023. The figure reflects a 128.65% gain from the $2.7 billion recorded in the previous year.
Fusaro emphasized Tether’s achievement by comparing its earnings with the records of American financial behemoths like Goldman Sachs and Morgan Stanley.
He pointed out that Tether’s $6.2 billion profit is roughly 78% of Goldman Sachs’ $7.9 billion earnings for 2023, even though the stablecoin firm has just 100 employees compared to Goldman Sachs, which has a staff strength of 48,500 individuals.
Similarly, Tether’s earnings make up 72% of Morgan Stanley’s $8.53 billion earnings, with 82,000 employees.
Ripple Seeking a Significant Share
Reacting to the data, Mekras remarked that the staggering 2023 earnings of Tether, the most prominent stablecoin issuer, account for another reason Ripple is pivoting to the stablecoin market.
Another reason why @Ripple is going after the stablecoin market. If done right, they can take a significant piece of the pie and generate a lot of profit. Stablecoins are the most integral part of the crypto economy and DeFi world. https://t.co/v0irVMkfB9
— Panos 🔼{X} (@panosmek) April 9, 2024
Furthermore, the industry pundit stated that if Ripple executes its strategy effectively, it could capture a substantial market share and generate significant profits. Mekras stressed that “stablecoins are the most integral part of the crypto economy and DeFi world.”
In its announcement last week to launch a USD stablecoin on XRPL, Ripple highlighted the growth opportunity in the stablecoin landscape. It noted the market would be worth nearly $3 trillion in four years, hence its pivot to the space.
Besides, Ripple’s President, Monica Long, agreed with Mekras’ view about stablecoin’s significance in decentralized finance.
Long emphasized that issuing USD-backed stablecoins on XRPL and Ethereum platforms will be crucial in unlocking fresh opportunities for DeFi and institutional applications.
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