Ripple announced plans to issue a stablecoin pegged to the U.S. dollar. The project aims to compete with USDT and USDC and bridge the gap between traditional finance and cryptocurrencies.
Ripple, one of the leading providers of blockchain solutions and cryptocurrency technologies for enterprise users, announced plans to issue a stablecoin whose exchange rate will be pegged 1:1 to the U.S. dollar (USD). According to a press release, Ripple’s stablecoin is scheduled to be released in 2024, right after receiving regulatory approval.
Ripple’s stablecoin will be 100% backed by different assets, including USD deposits, short-term U.S. government treasuries, and “other cash equivalents.” The plan is to conduct a monthly review of the asset’s financial backing with independent auditors and publish the results.
Among the features of Ripple’s stablecoin are:
- focus on enterprise users;
- thorough compliance with regulatory requirements;
- liquidity provision on DEXs on the XRPL network;
- full transparency of reserves;
- multichain compatibility.
Initially, Ripple’s stablecoin will be released on the XRP Ledger and Ethereum blockchains. Further plans are to make it available on other blockchain networks and the broader DeFi ecosystem.
In a press release, Monica Long, President at Ripple, said that issuing the company’s stablecoins will enable institutional scenarios for using decentralized finance in various ecosystems. Brad Garlinghouse, CEO at Ripple, said that “it’s a natural step for Ripple to continue bridging the gap between traditional finance and crypto.”
David Schwartz, CTO at Ripple, revealed to the media that the company intends to compete with USDT and USDC in the stablecoin market. The press release states that the market is worth $150 billion but could exceed $2.8 trillion by 2028. Ripple relies on its credibility, track record, and financial strength to expand into the stablecoin market.
The ticker of Ripple’s stablecoin has yet to be chosen.
Ripple recently launched the AMM protocol on XRP Ledger. On top, the company’s constantly expanding international cooperation in decentralized technologies. In November 2023, it became known that Ripple’s blockchain solution would be used to implement a system of cross-border payments between 27 countries in Africa, the Gulf Cooperation Council, the U.K., and Australia.
