Ripple vs. Stablecoin Giants: Analyzing the Ongoing Debate
In the ever-evolving world of cryptocurrency, the tension between Ripple and the broader XRP community has resurfaced, fueled by on-chain investigator ZachXBT’s recent statements. His comments have once again positioned Ripple as a contentious player within the realm of major stablecoin ecosystems.
The Controversial Exchange: ZachXBT vs. Circle
Advertisement Banner
The latest round of debate was sparked when WatcherGuru shared information on X+ stating that Circle, the company behind USD Coin (USDC), is seeking to become a federally regulated national trust bank in the United States. Within moments, ZachXBT, renowned for his precise wallet-tracking that has exposed over $100 million in blockchain thefts, accused Circle of ignoring prohibited North Korean activities.
“Circle / USDC serves as the main infrastructure for DPRK IT professionals to process payments. They do nothing to detect or freeze these operations, yet claim to adhere to compliance… I can highlight substantial figures in recent activity,” he remarked, linking this negligence to what he termed “the crime super cycle.”
Trust Issues: Tether, Circle, Paxos vs. Ripple
An XRP enthusiast quickly attempted to shift the conversation, suggesting the use of Ripple’s upcoming asset-backed stablecoin, RLUSD, instead. ZachXBT’s response was clear and critical: “I have far more faith in Circle, Paxos, or Tether than in Ripple.”
Transparency and User Base: The Core of the Debate
Challenged to justify his trust in Tether, despite its scrutinized reserves, over Ripple, ZachXBT offered a concise explanation: “The others have genuine users, whereas Ripple does not. Their user base is constructed through misleading paid partnerships to simulate adoption.”
The XRP supporter dismissed this view as “lazy,” citing collaborations with AeonPay, Alchemy Pay, and numerous merchants, arguing that such partnerships are a common strategy across the industry for growth. ZachXBT refrained from further elaboration, yet his ongoing critiques have been consistent.
Ripple’s Adoption and Financial Movements Under Scrutiny
In March 2025, ZachXBT emphasized that a legitimate layer-1 blockchain can be identified by the presence of native stablecoins from leading issuers like Circle, Tether, and Paxos. He pointed out that neither ADA nor XRP had any such stablecoins at the time.
Further in January 2025, ZachXBT highlighted what he deemed as opaque financial movements, noting that over $109 million in XRP had been transferred from a wallet activated by Ripple co-founder Chris Larsen to exchanges such as Coinbase, Bitstamp, and Bybit within a single month.
Conclusion: Ripple’s Trustworthiness in Question
A February 2024 call to investigate a supposed XRP scam address elicited a sarcastic response from ZachXBT, suggesting that the alleged scam couldn’t surpass the alleged continuous selling by XRP founders. Collectively, his observations paint a picture of skepticism towards Ripple, citing fabricated network adoption and ongoing insider transactions.
As of now, Ripple Labs, Circle, Paxos, and Tether have not publicly addressed these recent statements. XRP’s market value hovers at $2.1978, reflecting ongoing market dynamics.
Our Editorial Commitment
Editorial Process: At Bitcoinist, we are dedicated to providing meticulously researched, accurate, and unbiased content. Our rigorous sourcing standards and comprehensive review process, conducted by top technology experts and seasoned editors, guarantee the integrity, relevance, and value of the information we deliver to our readers.
