Does Circle's Latest Move Threaten XRP?
The average trip on an airplane isn't really in competition with the average trip on a train or a subway. Most of the time, they serve different kinds of travelers. But sometimes, the routes overlap enough to matter, and in rare cases, the infrastructural advantages of a new train line can put a dent in plane ticket bookings.
This is basically the right mental model for reading Circle Internet Group's (NYSE: CRCL) announcement of Arc, a new Layer-1 (L1) blockchain designed around stablecoin finance. For holders of XRP (CRYPTO: XRP), the potential overlaps between Arc and the XRP Ledger (XRPL) are with payments, foreign exchange (FX) and international money transfers, and transaction settlement for trades.
So, does that mean launching Arc is a direct threat to XRP?
Source Fool.com
