- Stablecoins are crucial in defining blockchain legitimacy, according to ZachXBT.
- Cardano and XRP Ledger currently lack major stablecoin issuances.
- Cardano Foundation emphasizes security, scalability, and real-world utility over stablecoin adoption.
ZachXBT, a crypto security analyst, has stated that the presence of stablecoins issued by major companies like Tether, Circle, and Paxos is a key indicator of a blockchain’s legitimacy.
His comments come after US President Donald Trump’s announcement on March 2 that Bitcoin, Ethereum, XRP, and Cardano would be added to the country’s strategic crypto reserves. However, ZachXBT pointed out that Cardano and XRP Ledger currently do not support significant stablecoin issuance, which he views as a potential weakness in their legitimacy.
One of the better indicators to judge how legitimate a chain is by how many native stables they have issued from Circle, Tether, or Paxos.
Both ADA and XRP have zero from major stablecoin issuers….
— ZachXBT (@zachxbt) March 3, 2025
ZachXBT argued that if major stablecoin issuers saw value in these blockchains, they would integrate their stablecoins into the networks. The absence of stablecoins on these blockchains raises questions about their widespread adoption, especially when compared to others like Bitcoin and Ethereum, which have established stablecoin ecosystems.
Exploring the Impact of Stablecoins Integration on Blockchain Ecosystems
In response to this view, Frederik Gregaard, CEO of the Cardano Foundation, clarified that stablecoin integration is just one of many factors that define a blockchain’s legitimacy. He explained that true legitimacy derives from essential elements like decentralization, security, sustainability, real-world utility, and community engagement. Gregaard emphasized that the Cardano Foundation focuses on building a robust infrastructure that can support global financial systems, with a primary focus on technical excellence, security, and scalability.
He also noted that while Cardano does not currently host stablecoins like Tether or USDC directly, stablecoins can still be used within its ecosystem via the Wanchain Bridge. Gregaard believes that as the network continues to expand and gain adoption, interest from major stablecoin issuers will increase.
Both Cardano and XRP Ledger have taken steps toward incorporating stablecoins in their ecosystems. Cardano launched its overcollateralized stablecoin, DJED, in 2022 and integrated the fiat-backed USDM stablecoin in 2024. On the other hand, Ripple has introduced the RLUSD stablecoin. Which gained approval from the New York Department of Financial Services and is expected to be listed on major exchanges soon.
While stablecoin adoption continues to grow on various blockchains. Cardano’s approach highlights that legitimacy is not solely determined by the presence of stablecoins but by the overall infrastructure and utility of the network
