The creator of the XRP ledger, Ripple has announced its plans to launch a stablecoin pegged to the US dollar. Indeed, the digital asset is expected to arrive later this year, and will initially be available on both the XRP ledger, as mentioned above, and Ethereum blockchains.
The stablecoin will be “100% backed by US dollar deposits, short-term US government Treasuries and other cash equivalents,” in a statement to CoinDesk. Moreover, Ripple CTO David Schartz said the firm is “looking to conquer the market and be in it for the long term.”
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Ripple Announces USD-Pegged Stablecoin
The digital asset market has seen Ripple emerge as one of its most important companies. It has engaged in a years-long legal battle with the US Securities and Exchange Commission (SEC). However, its outcome could be immensely positive in the long run. Yet, it has also struggled with its native token, XRP, throughout the year.
However, that hasn’t stopped the firm from taking on its next big challenge. Indeed, Ripple has announced that it will launch a stablecoin that is pegged to the US dollar. The digital asset is expected to be made available later this year. Ultimately, it denotes an interesting market transition for the company
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In its announcement, the firm noted the overall prevalence of the stablecoin market. Specifically, it is forecasted to surpass $2.8 trillion by 2028, while already exceeding $150 billion in 2024. Moreover, Ripple has noted the “clear demand for stablecoins that deliver trust, stability, and utility.”
“This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto,” Ripple CEO Brad Garlinghouse said in a statement. “Institutions entering this space are finding success by partnering with compliant, crypto-native players and Ripple’s track record and resiliency speak for itself.”
furthermore, Ripple President Monica Long noted the impacts of the stablecoin on the networks. Specifically, she stated that the stablecoin will provide “a pivotal entry point” to create new DeFi opportunities across different blockchains. Thereafter, she stated the “trusted stablecoin” will increase both adoption and development for the XRPL.