Stablecoins Signal Blockchain Legitimacy, Trump's Crypto Reserves Revealed
1min read Crypto security analyst and Paradigm adviser ZachXBT has highlighted the significance of stablecoin presence as a key indicator of blockchain legitimacy. In a recent statement, ZachXBT emphasized that the circulation of stablecoins from major issuers such as Circle, Tether, and Paxos should be a crucial metric in evaluating the credibility of blockchain networks.
ZachXBT's comments come in the wake of U.S. President Donald Trump's announcement on March 2, which included certain digital assets in the country's strategic crypto reserves. The assets identified 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 noted that neither Cardano nor the XRP Ledger currently hosts a supply of major stablecoins. ZachXBT suggested that if the major stablecoin issuers saw "value to capture" on the blockchains, they would have integrated their stablecoins into the networks.
In his official Telegram group, ZachXBT also pointed out that dormant wallet addresses linked to Ripple co-founder Chris Larsen still hold 2.7 billion XRP. With XRP trading at $2.64, these holdings are valued at about $7.12 billion. He mentioned that the addresses transferred about $109 million in XRP to exchanges in January, implying that the wallets could potentially continue selling off the huge stash over time. However, he highlighted that several addresses have been dormant for six to seven years, leading to speculation that Larsen may have lost access to the funds or transferred them in 2013.
While major stablecoin issuers may not be on the XRP Ledger or the Cardano blockchain, both networks have stablecoins within their ecosystems. Ripple's RLUSD stablecoin started trading on exchange platforms Uphold, MoonPay, Archax, and CoinMENA after the New York Department of Financial Services approved the stablecoin's launch on Dec. 10, 2024. Meanwhile, Cardano also has its stablecoins, including Djed (DJED) and USDM, which have been met with optimism from members of the Cardano community.
