Key Points
- Ripple plans to launch a US stablecoin in the $150 billion market.
- The token will be 100% backed by US dollar deposits, short-term US Treasurys, and other cash equivalents.
The creator of XRP Ledger, Ripple, is reportedly introducing its own stablecoin pegged to the price of the US dollar.
In the official announcement, the crypto firm describes the booming stablecoin market, which is currently about $150 billion and projected to surge to $2.8 trillion by 2028. Ripple also highlights the demand for trust, stability, and utility in such a market.
These are the triggers for the firm’s decision to launch a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.
1/ The stablecoin market is booming – around $150B today, and projected to soar past $2.8T by 2028. There's a clear demand for trust, stability, and utility.
That's why later this year we’re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.…
— Ripple (@Ripple) April 4, 2024
Extending Ripple’s reach into institutional and DeFi realms
According to the announcement shared via X, Ripple says that this move will mark the firm’s entrance into both institutional and DeFi realms.
It will diversify use cases and enhance their payment infrastructure, bringing the worlds of traditional finance and DeFi together.
The stablecoin will be reportedly backed by US dollar deposits, US government bonds, and cash equivalents, with Ripple pledging transparency with monthly third-party attestations, ensuring reliability and trust.
The future of crypto is multichain, Ripple says
The firm also highlighted the importance of stablecoins as an entry point to DeFi, noting that bringing a trusted, enterprise-grade stablecoin to the XRP Ledger will bring more use cases and opportunities for both users and devs.
Ripple notes that the future of crypto is multichain, and launching the stablecoin on both XRPL and Ethereum will pave the way for cross-chain interoperability.
Ripple’s move aims more than innovation in the industry, and, according to their reports, the firm aims to set the stage for a more robust crypto landscape.
6/ Ripple's move into stablecoins isn't just about innovation; it's about contributing to the #XRPL ecosystem and setting the stage for a more robust and diverse crypto landscape.
Learn more about the Ripple stablecoin: https://t.co/s770qUys8Y
— Ripple (@Ripple) April 4, 2024
Ripple President, Monica Long, addresses the decision, saying that a trusted stablecoin on XRPL will drive more adoption and development to the ecosystem:
“The XRP Ledger’s native capabilities, including a decentralized exchange and automated market maker, were built to utilize XRP as the bridge asset. Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem.”
In their official announcement, Ripple also addressed the key benefits of such a stablecoin, which include the following: enterprise-grade solutions, compliance-first mindset, liquidity on DEX, transparent stablecoin reserve, and multichain compatibility.
