Stablecoins' Role In Blockchain Legitimacy And Ripple's XRP Holdings

According to Cointelegraph, crypto security analyst and Paradigm adviser ZachXBT emphasized the importance of stablecoin circulation from major issuers like Circle, Tether, and Paxos in evaluating the legitimacy of blockchain networks. This statement came after U.S. President Donald Trump announced on March 2, 2025, that certain digital assets would be included in the United States' strategic crypto reserves. The assets identified for inclusion were Bitcoin (BTC), Ether (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). 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 pointed out that neither Cardano nor the XRP Ledger currently hosts a supply of major stablecoins. ZachXBT suggested that if these stablecoin issuers saw potential value in these blockchains, they would have integrated their stablecoins into the networks. In his official Telegram group, ZachXBT also highlighted that dormant wallet addresses linked to Ripple co-founder Chris Larsen still hold 2.7 billion XRP, valued at approximately $7.12 billion with XRP trading at $2.64. He noted that these addresses transferred about $109 million in XRP to exchanges in January, indicating the possibility of continued sell-offs over time. However, he mentioned that several addresses have been inactive for six to seven years, sparking speculation that Larsen may have lost access to the funds or transferred them in 2013. On January 31, 2024, ZachXBT reported that Larsen was hacked for 213 million XRP, valued at about $112.5 million at the time. While major stablecoin issuers may not be present on the XRPL or Cardano blockchain, both networks have their own stablecoins. On December 17, 2024, Ripple’s RLUSD stablecoin began trading on platforms like Uphold, MoonPay, Archax, and CoinMENA after receiving approval from the New York Department of Financial Services on December 10. Ripple president Monica Long announced on January 7 that RLUSD would soon be listed on major exchanges. Meanwhile, Cardano has its stablecoins, including Djed (DJED), an overcollateralized stablecoin backed by ADA, and Shen (SHEN) as its reserve coin. In 2024, Cardano integrated the fiat-backed stablecoin USDM, which was launched on March 18 and was met with optimism from the Cardano community, marking a significant milestone for the network.