Ripple Unveils Plans to Launch USD-Pegged Stablecoin on XRP Ledger
Ripple, the enterprise-focused blockchain service, has announced its intention to introduce a new stablecoin pegged to the U.S. dollar later this year. The stablecoin will initially be deployed on the XRP Ledger and the Ethereum blockchain.
Key points:
- Ripple’s stablecoin will be backed by USD deposits, short-term U.S. government treasuries, and other cash equivalents.
- The company aims to differentiate itself through a compliance-first mindset and monthly audits by a top-tier accounting firm.
- Ripple President Monica Long believes the stablecoin will unlock new opportunities for institutional and DeFi use cases across multiple ecosystems.
- Ripple CTO David Schwartz sees room in the market for multiple stablecoin options.
Ripple anticipates a clear demand for stablecoins that offer trust, stability, and utility as the stablecoin market grows from its current value of over $150 billion to $2.8 trillion by 2028.
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Ripple plans to differentiate itself from stablecoin competition
The company plans to differentiate itself from other stablecoin providers by maintaining a compliance-first approach. Additionally, Ripple intends to guarantee complete transparency by having a top-tier accounting firm conduct monthly audits.
Ripple Chief Technology Officer David Schwartz emphasized the importance of transparency and the potential for growth in the stablecoin market. He noted that the company’s strong balance sheet and commitment to compliance make it well-positioned to capture a significant share of the market, even if it doesn’t become the dominant player.
Schwartz also highlighted the attractiveness of Ripple’s stablecoin for small- and medium-sized enterprises and non-banking financial institutions.
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Ripple CTO expressed hope that the stablecoin would drive enterprise-grade institutional adoption, which he believes has been lacking due to regulatory issues and the absence of a well-packaged product.
The launch of Ripple’s stablecoin comes at a time when the company is engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC) over the sale of XRP, which the agency claims is an unregistered security.
Despite this ongoing challenge, Ripple remains committed to compliance and has been expanding its license portfolio in key regions around the globe.
