Ripple to Launch a Stablecoin Pegged to the US Dollar – Competes with USDT and USDC

• Ripple is one of the crypto companies facing massive legal issues with the Securities and Exchange Commission (SEC). Apparently, this has affected their native token, XRP, and, subsequently, their overall operations.
• However, they are not deterred by all these challenges as they plan to launch their own stablecoin. They aim to make it available to both retail and enterprises on different crypto blockchains.

The company behind the XRP token and Ledger, Ripple, has revealed its plans to introduce a stablecoin to the crypto market. Ripple wants to achieve this objective before the end of 2024, and the stablecoin will be available on both the XRP Ledger and the Ethereum blockchain.

Ripple Unveils Their New Stablecoin Initiative

Ripple announced its plan to expand its financial services into the stablecoin market. According to them, the stablecoin sector of the crypto industry currently has a valuation of over $150 billion. However, forecasts suggest that this sector will have a market cap of more than $2 trillion by 2028. Thus, Ripple is aware of the increasing demand for stablecoins and the growth in them.

Ripple CEO Brad Garlinghouse, while speaking about the new development, said the company will utilize their experience to bridge the gap between traditional finance and crypto.

“This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto. Institutions entering this space are finding success by partnering with compliant, crypto-native players and Ripple’s track record and resiliency speaks for itself, as we launch new products and acquire companies through multiple market cycles. This move is also monumental for the XRP Ledger community, driving more use cases, liquidity and opportunities for developers and users,” he said.

Accordingly, the stablecoin will be pegged 1:1 with the US dollar and 100% backed by US dollar deposits, short-term government treasuries, and other cash equivalents. Moreover, besides XRP Ledger (XRPL) and Ethereum (ETH), Ripple plans to expand to other DeFi protocols and blockchains.

Speculated Benefits of the Upcoming Stablecoin

In its press release, Ripple shared some of the expected benefits of its USD stablecoin. The crypto company highlighted a compliance-first mindset as one of the benefits of its upcoming stablecoin. After their long battle with the US SEC, Ripple is well-versed in maintaining regulatory compliance. Moreover, they boast of having the necessary licenses to operate as a stablecoin issuer.

Secondly, Ripple highlights the multi-chain compatibility of its stablecoin as one of its advantages. According to the company, their stablecoins would operate on other blockchains and DeFi protocols besides XRPL and ETH blockchains. While allowing users to benefit from cross-chain interoperability, Ripple will try to maintain transparency with a 1:1 reserve of cash and cash equivalents.

Also, the target market for Ripple’s stablecoin isn’t only retail but also enterprises. Moreover, they already have experience in offering blockchain-based enterprise-grade solutions to large financial institutions. Monica Long, Ripple President, says their overall aim is to drive crypto adoption.

This news article is written by the team behind AlgosOne.ai. If you want to earn passive income by letting an AI-powered platform make trades on behalf of you, AlgosOne is your place to go!

For a limited time, AlgosOne is offering a two-week free trial with zero risk. If you want to test the platform for yourself, you can sign up using this link.