The crypto provider’s new stablecoin will be 100% backed by USD deposits, short-term US government treasuries and other cash equivalents
Ripple is set to issue a new stablecoin pegged to the US dollar, bringing more utility and liquidity to its XRP Ledger
Ripple, a prominent provider of enterprise blockchain and cryptocurrency solutions, has unveiled its intentions to introduce a stablecoin pegged at a 1:1 ratio to the US dollar (USD).
This forthcoming stablecoin from the crypto provider will be fully backed by USD deposits, short-term US government treasuries, and other cash equivalents.
Ripple has outlined its commitment to transparency by planning to have the reserve assets audited by a third-party accounting firm. Additionally, Ripple intends to publish monthly attestations regarding the stability and backing of the stablecoin.
Ripple: More utility to XRP Ledger
Ripple’s recent announcement marks its inaugural venture into the rapidly expanding stablecoin market, offering investors a less volatile avenue to engage with cryptocurrencies.
Supported by data indicating the stablecoin market’s current value at approximately US$150 billion, Ripple foresees this market to soar to an astonishing US$2.8 trillion within the next four years.
With over a decade of experience in developing real-world financial solutions for institutions globally, Ripple is strategically venturing into the stablecoin domain.
Brad Garlinghouse, Ripple’s CEO, asserts, “This move is a natural progression for Ripple as we continue to bridge the gap between traditional finance and the crypto realm.” He emphasizes the success institutions find in partnering with compliant, crypto-native entities, highlighting Ripple’s track record and resilience across various market cycles.
Garlinghouse also underlines the significance of this initiative for the XRP Ledger community, anticipating enhanced use cases, liquidity, and opportunities for developers and users alike.
Upon its launch, Ripple’s new stablecoin will be accessible on both the XRP Ledger and Ethereum blockchains. Furthermore, Ripple intends to extend its stablecoin to additional blockchains and decentralized finance (DeFi) protocols in the forthcoming months.
KEY BENEFITS OF RIPPLE’S STABLECOIN INCLUDE:
- Enterprise-Grade
- Compliance-First Mindset
- Liquidity on the Decentralised Exchange (DEX)
- Transparent Stablecoin Reserve
- Multichain Compatibility
Monica Long, Ripple’s President, elaborates: “Introducing our stablecoin on both the XRP Ledger and Ethereum represents a significant milestone, unlocking new opportunities for institutional and decentralized finance (DeFi) applications across diverse ecosystems.
“The XRP Ledger’s inherent features, such as its decentralized exchange and automated market maker, were specifically designed to leverage XRP as the bridge asset. By integrating a trusted stablecoin onto the XRPL, we anticipate increased adoption and development, fostering a dynamic ecosystem.”
For Ripple, the introduction of a new stablecoin follows its collaboration with the Axelar Foundation in February 2024, aimed at enhancing the interoperability of the XRP Ledger across various blockchain networks.
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