Better Stablecoin Buy: Ripple USD vs. PayPal USD

Core Insights - Most cryptocurrencies are volatile and not suitable for conservative investors, while stablecoins pegged to fiat currencies may be more appealing for those seeking stability [1] - A comparison of two popular dollar-backed stablecoins, Ripple USD and PayPal USD, is conducted to determine which is a more reliable investment in the current market [2] Group 1: Stablecoin Overview - Ripple USD was launched on December 17, 2024, by Ripple Labs and operates on the XRP Ledger as well as an ERC-20 token on Ethereum [4] - PayPal USD was introduced on August 7, 2023, by Paxos Trust Company and is integrated into PayPal's app and Venmo, initially minted as an ERC-20 token on Ethereum and later on Solana [5] Group 2: Market Capitalization and Ecosystem - Ripple USD has a market cap of $730 million, while PayPal USD has a larger market cap of $1.26 billion, benefiting from PayPal's extensive user base of 438 million active accounts [6] - PayPal USD has a more expansive ecosystem and stronger liquidity compared to Ripple USD, which has not yet secured as many active users or partners [7] Group 3: Backing and Reliability - Both stablecoins are backed by cash and short-term U.S. Treasuries, ensuring their reliability [7] - Paxos provides monthly attestations of its reserves from independent auditors for PayPal USD, while Ripple has also started publishing monthly attestations since December [8]