The blockchain company Ripple, known for developing the XRP Ledger, is planning to introduce a stablecoin pegged to the US dollar, initially deploying it on both Ethereum’s ERC-20 token standard and its institution-focused XRP Ledger.
Ripple President Monica Long stated in a statement on Thursday that “issuing our stablecoin on the XRP Ledger and Ethereum will serve as a pivotal entry point to unlock new opportunities for institutional and DeFi use cases across multiple ecosystems.”Â
Long added, “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.”
The stablecoin would be backed by “USD deposits, short-term U.S. government treasuries, and other cash equivalents,” the company added in a statement. It is scheduled to launch later this year. “These reserve assets will be audited by a third-party accounting firm, and Ripple will publish monthly attestations.”
The two most popular USD-pegged stablecoins at present are USDC from Circle Internet Financial and USDT from Tether. According to a statement released by Ripple, the stablecoin industry, which is currently valued at over $150 billion, is predicted to grow to $2.8 trillion by 2028.
Chief Technology Officer of Ripple David Schwartz stated that “in retrospect,” he and his team would have preferred to introduce a stablecoin at an earlier date. However, he noted that it makes strategic sense to release one this year after studying more about the market and keeping an eye on economic issues.
“The interest rate increase makes it a much more attractive market,” he stated. “Also there’s kind of been a shakeup, and really, Tether is almost a no-go for us because of the regulatory issues. There’s just so much uncertainty around it.”
Ripple‘s stablecoin offers enterprise-grade solutions, compliance-first approach, liquidity on the Decentralized Exchange (DEX), transparent reserve, and multichain compatibility.
