Ripple, the company behind the XRP Ledger (XRPL) and a leader in enterprise blockchain solutions, has announced plans to launch a USD-pegged stablecoin in 2024. This stablecoin will be available on both the XRPL and Ethereum blockchain.
The announcement comes amid a surging stablecoin market. Ripple highlighted this in its announcement, drawing attention to the stablecoin market’s valuation of approximately $150 billion, which is projected to reach $2.8 trillion by 2028. The firm cites this growth as evidence of a clear demand for trust, stability, and utility within the cryptocurrency space.
This initiative represents a strategic expansion for Ripple, extending its reach into both institutional and decentralized finance (DeFi) sectors. The company expects the stablecoin to diversify use cases for XRP, further enhance its payments infrastructure, and bridge the gap between traditional and decentralized financial systems.
Trust and reliability are paramount for the stablecoin initiative. Ripple emphasizes 100% backing by US dollar deposits, U.S. government bonds, and cash equivalents. Additionally, the firm pledges transparency through monthly independent third-party audits to ensure the stablecoin’s solvency.
Many have been calling for a stablecoin on XRPL for a long time. Circle, the creator of USDC, was questioned recently on the absence of USDC on XRPL. A Ripple-backed stablecoin has many advantages for XRPL users.
By introducing a trusted, enterprise-grade stablecoin to the XRP Ledger, Ripple plans to create a more vibrant ecosystem. This stablecoin is expected to generate a wider range of use cases, increased liquidity, and more opportunities for developers and users.
Recognizing the evolving multichain nature of the cryptocurrency landscape, Ripple plans to launch its stablecoin on both the XRP Ledger and Ethereum. This approach aims to facilitate cross-chain interoperability, a key feature for seamless transactions across different blockchain networks.
Ripple views this launch as a contribution to the overall health and diversity of the XRP ecosystem, ultimately fostering a more robust and comprehensive cryptocurrency landscape.
Brad Garlinghouse, CEO of Ripple, commented on the announcement, stating that “Launching a stablecoin is a natural step for Ripple as we bridge the gap between traditional finance and crypto.” He emphasized Ripple’s competitive advantages, including years of experience, a strong regulatory footprint, a robust balance sheet, and a global network for facilitating payments using XRP and the forthcoming stablecoin.
Ripple’s CTO, David Schwartz, echoed this sentiment, highlighting the potential of a high-quality USD stablecoin on the XRP Ledger. He pointed to the platform’s existing features, such as the decentralized exchange, issued currencies, auto-bridging using XRP, and the Automated Market Maker (AMM), as factors that will create a game-changing environment for developers and users alike.
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