Stablecoin presence key to blockchain legitimacy, says ZachXBT

Update (March 3, 12:50 pm UTC): This article has been updated to add comments from Cardano Foundation CEO Frederik Gregaard.

Crypto security analyst and Paradigm adviser ZachXBT said the circulation of stablecoins from major issuers such as Circle, Tether and Paxos should be a key metric in assessing the legitimacy of blockchain networks.

His comments followed US President Donald Trump’s announcement on March 2 that certain digital assets would be included in the country’s strategic crypto reserves. Trump identified Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL) and Cardano (ADA) as the assets to be included in the reserves. 

On March 3, ZachXBT argued that the presence of stablecoins issued by Circle, Tether and Paxos is a strong indicator of a blockchain’s legitimacy. He noted that neither Cardano nor the XRP Ledger currently hosts a supply of major stablecoins.

He said that if the major stablecoin issuers saw “value to capture” on the blockchains, they would have integrated their stablecoins into the networks. 

Stablecoin integration is “just one metric” 

In a statement to Cointelegraph, Cardano Foundation CEO Frederik Gregaard told Cointelegraph that the blockchain industry should move beyond “simplistic measures of legitimacy.” The executive said stablecoin integration is just one of the many metrics demonstrating blockchains’ adoption and utility:

“True legitimacy stems from fundamental elements including security, decentralization, sustainability, development activity, real-world utility and community engagement.” 

The executive said the Cardano Foundation’s approach prioritized building infrastructure that can support global-scale financial systems. Gregaard told Cointelegraph that the Cardano ecosystem’s focus is technical excellence, security and scalability. As its capabilities expand, he said he expects major stablecoin issuers’ interest in the network to grow. 

“As transaction adoption increases and our capabilities expand, we anticipate growing interest from major stablecoin issuers, reflecting the maturity of the Cardano blockchain,” Gregaard said. 

Gregaard also pointed out that while they are not minted directly on Cardano, stablecoins like Tether’s (USDT) and USDC (USDC) can be used within the ecosystem through the Wanchain Bridge. 

He said the foundation is “open to collaborations” with major stablecoin issuers and will work to attract new stablecoins to the ecosystem.

Chris Larsen-linked addresses hold over $7 billion in XRP

In his official Telegram group, ZachXBT also pointed out that dormant wallet addresses linked to Ripple co-founder Chris Larsen still hold 2.7 billion XRP. With XRP trading at $2.64, these holdings are valued at about $7.12 billion.

He said the addresses transferred about $109 million in XRP to exchanges in January, implying that the wallets could potentially continue selling off the huge stash over time. 

However, he highlighted that several addresses have been dormant for six to seven years, leading to speculation that Larsen may have lost access to the funds or transferred them in 2013.

On Jan. 31, 2024, ZachXBT reported that Larsen was hacked for 213 million XRP worth about $112.5 million at the time. 

Cointelegraph reached out to Ripple for comments but did not receive a reply by publication.

Related: How stablecoins improve US dollar utility — Paxos CEO

Stablecoins in the XRPL and Cardano networks

While major stablecoin issuers may not be on the XRPL or the Cardano blockchain, both networks have stablecoins within their ecosystems. 

On Dec. 17, 2024, Ripple’s RLUSD stablecoin started trading on exchange platforms Uphold, MoonPay, Archax and CoinMENA after the New York Department of Financial Services approved the stablecoin’s launch on Dec. 10. On Jan. 7, Ripple president Monica Long said that Ripple’s RLUSD would soon be listed on major exchanges. 

Meanwhile, Cardano also has its stablecoins. In 2022, Cardano launched Djed (DJED), an overcollateralized stablecoin backed by ADA and uses Shen (SHEN) as its reserve coin. According to CoinGecko, the token has a market capitalization of $4 million. 

In 2024, Cardano integrated the fiat-backed stablecoin USDM. On March 18, the USDM launch was met with optimism from members of the Cardano community and seen as a “major milestone” for the network.  

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