Blockchain investigator and security analyst ZachXBT has emphasized that stablecoins play a critical role in determining a network’s legitimacy, citing their influence on adoption, liquidity, and institutional trust. His comments follow recent developments, including former U.S. President Donald Trump’s endorsement of certain digital assets for inclusion in a strategic crypto reserve.
On March 3, ZachXBT argued that the presence of stablecoins issued by major firms like Circle (USDC), Tether (USDT), and Paxos (USDP) is a strong indicator of a blockchain’s credibility and real-world utility.
His remarks came shortly after Trump announced that the U.S. would include Bitcoin, Ethereum, XRP, Solana, and Cardano in its strategic crypto reserves. However, ZachXBT pointed out that Cardano and XRP Ledger (XRPL) currently lack major stablecoin integrations, questioning their standing in the broader crypto ecosystem.
“If stablecoin issuers saw value to capture on these blockchains, they would have integrated their stablecoins into these networks,” ZachXBT stated.
Cardano Foundation Pushes Back
In response, Cardano Foundation CEO Frederik Gregaard told Cointelegraph that relying solely on stablecoin adoption as a measure of legitimacy is a flawed approach.
“True legitimacy stems from fundamental elements, including security, decentralization, sustainability, development activity, real-world utility, and community engagement.”
Gregaard emphasized that Cardano prioritizes technical excellence, security, and scalability over short-term adoption metrics. He also noted that while Cardano does not have direct USDT or USDC support, users can access these stablecoins via the Wanchain Bridge.
“As transaction adoption increases and our capabilities expand, we anticipate growing interest from major stablecoin issuers,” he added.
Are XRP and Cardano Really Lacking Stablecoin Adoption?
While neither XRP Ledger nor Cardano natively hosts major stablecoins like USDC or USDT, both ecosystems have their own stablecoin solutions:
Stablecoins on XRP Ledger (XRPL)
- In December 2024, Ripple’s RLUSD stablecoin launched after receiving approval from the New York Department of Financial Services (NYDFS).
- RLUSD is already tradable on exchanges like Uphold, MoonPay, Archax, and CoinMENA, with Ripple’s president hinting at more listings soon.
Stablecoins on Cardano
- Cardano launched DJED, an overcollateralized ADA-backed stablecoin, in 2022.
- In March 2024, Cardano integrated USDM, a fiat-backed stablecoin, which was met with optimism from the Cardano community.
Despite these developments, neither RLUSD nor DJED has gained the level of adoption that USDT and USDC enjoy across Ethereum, Solana, or Binance Smart Chain (BSC).
Chris Larsen’s Dormant XRP Holdings Raise Questions
Beyond stablecoins, ZachXBT also flagged dormant wallet addresses tied to Ripple co-founder Chris Larsen, which collectively hold 2.7 billion XRP, valued at approximately $7.1 billion.
He noted that $109 million worth of XRP was moved to exchanges in January, hinting at possible sell-offs or liquidations.
However, some of these addresses have been inactive for six to seven years, leading to speculation that Larsen may have lost access to the funds or transferred ownership in 2013.
Final Takeaway
ZachXBT’s argument that stablecoin adoption is a key metric for blockchain legitimacy raises important questions about how blockchains gain mainstream credibility. While Cardano and XRP Ledger maintain that legitimacy is about more than just stablecoins, their lack of USDT or USDC integration remains a talking point among analysts and investors.
As institutional demand for regulated, fiat-backed stablecoins grows, the big question is: Will XRP and Cardano attract major stablecoin issuers, or will they struggle to gain further adoption without them? One thing is clear in the evolving world of blockchain, stablecoin liquidity matters more than ever.
