Strategic advisor at Tether and VanEck fund manager Gabor Gurbacs recently shared his perspective on Ripple's announcement to launch a stablecoin backed by USD in the upcoming year.

In a tweet, Gurbacs mentioned that while every blockchain company is eager to introduce their own stablecoin, he believes that Tether's USDT will continue to be the dominant player in the stablecoin market.

Gurbacs outlined several reasons to support his view that USDT will maintain its position at the top, including Tether's team with the right principles and history, high liquidity, appropriate geo-focus, and a suitable design. He also emphasized the importance of small fees in crypto transactions, hinting at potential challenges faced by Ripple on the Ethereum chain.

Additionally, the news of Ripple planning to launch a stablecoin on both XRP Ledger and Ethereum has garnered attention. Ripple's CEO, Brad Garlinghouse, expressed that launching a stablecoin is the next logical step for the company, given its experience, regulatory background, financial strength, and wide payment network.

Ripple's future stablecoin will not only be backed by USD but also by US government bonds and cash equivalents, with monthly third-party attestations for trust and reliability. This move by Ripple is expected to open up new opportunities in the stablecoin market and enhance liquidity and use cases for the XRPL ecosystem, benefiting developers and users alike.