Ripple's Multi-Billion Dollar USDT European Market Looks After Regulatory Debate ⋆ ZyCrypto

The stable Ripple RLUSD could take a large share of the European market away from USDT Tether as the previous navigation regulatory waters. Speculation has moved the crypto space on the status of USDT in Europe following the regulation of Markets in Crypto Assets (MiCA). The race for stablecoin dominance remains competitive as new tokens entered the market last year. However, USDT remains the largest stablecoin by volume and the fourth largest crypto asset by market cap.

Crypto Analyst recommends the growth of RLUSD

In a new piece, digital asset trader Maartum expressed hope for RLUSD to lead the post-MiCA era in Europe. Launched last year, the asset has been adopted across institutional and retail markets, detailing Ripple's fundamentals with the prospect of further progress. On the XRP Ledger, transactions exceed 33,900, while Ethereum numbers 1,690.

This growing trading volume, along with other factors, has fueled institutional interest in the fund. RLUSD's focus on compliance is a major benefit since MiCA's cancellation. On the other hand, USDT is facing regulatory headaches in Europe after MiCA. Last year, Coinbase delisted the asset on the continent along with other crypto assets citing regulatory concerns.

“Based on the latest information, we currently anticipate having to limit services for the following funds, USDT, PAX, PYUSD, GUSD, GYEN, and DAI, (collectively, MiCA restricted funds.) We regularly review the funds we provide. to customers on our platform to ensure we meet regulatory requirements and access re-enabling services for a stable that achieves MiCA compliance at a later date.

RLUSD to take advantage of institutional investors

Reports are circulating that Tether does not have the e-money license required to operate within the jurisdiction. According to Maartum, the Tether listing allows RLUSD to attract more adoption. Some crypto users argue that Ripple's debate with the US Securities and Exchange Commission (SEC) is a guiding principle for the company in future products.

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Stablecoins are important to institutional clients because they are a gateway asset to the market. This is based on its underlying asset, unlike other cryptos which are full of volatility. These investors can stimulate a new level of investment for a stable as the general market numbers grow.

Last year, the income of institutional investors pushed the crypto market cap above $3 trillion, with Bitcoin breaking several all-time highs. A similar trajectory was also recorded in Ethereum and other altcoins.