The digital assets market is experiencing a wave of new stablecoin launches by various technology and cryptocurrency companies, and even a state, in spite of concerns about their limited use and chances of survival.

What Happened: A Financial Times report on Thursday revealed that blockchain-based payments company Ripple Labs, lender Banking Circle, cryptocurrency firm Paxos International, and Hong Kong’s IDA have recently unveiled plans for their own stablecoins.

Banking Circle launched its Euro-pegged stablecoin, EURI, last month, compliant with the Markets in Crypto Assets Regulation (MiCA), the European Union’s (EU) regulatory framework.

Similarly, IDA raised nearly $47 million in seed funding to launch its first fiat-referenced stablecoin, HKDA, which will be regulated in Hong Kong.

Ripple Labs, one of the biggest blockchain-based companies, and closely linked to the $30-billion capitalization token XRP (CRYPTO: XRP), also announced that it was nearing the launch of its U.S.-dollar stablecoin, called Ripple USD (RLUSD).

Joining the bandwagon was former President Donald Trump’s upcoming cryptocurrency venture, which pledged to drive the mass adoption of dollar-pegged stablecoins.

Companies aside, even the state of Wyoming was planning to launch a dollar-backed stablecoin in the first quarter of 2025, to be called the Wyoming Stable Token.

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Why It Matters: The flurry of launches signified a growing conviction that cryptocurrencies, particularly those with less volatile pricing, would transform everyday payments for consumers.

However, skeptics contend that most of these new stablecoins lack distinctive features to draw users from industry frontrunners Tether (CRYPTO: USDT) and Circle (CRYPTO: USDC). A senior cryptocurrency executive told Financial Times, “The reality is a lot of them are just going to burn out.”

The report pointed out that stablecoins remained restricted for trading, being primarily used for on-ramping and off-ramping services.

“Stablecoins are a novelty asset that some people find useful, and some people just buy them because they like the concept of retaining a cash-equivalent value in a digital wallet,” Etay Katz, partner at law firm Ashurst in London, stated.

“No significant bank is going to take risk on a stablecoin issuer on a new name, unregulated name or a start-up.”

The total stablecoin market capitalization exceeded $170 billion as of this writing, per CoinMarketCap, with USDT cornering nearly 70% of the total market.

Photo by Igor Faun on Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.