Ripple Unveils Plans for Stablecoin Pegged 1:1 to USD
Ripple, a prominent provider of enterprise blockchain and cryptocurrency solutions, has announced its intention to launch a stablecoin that will be pegged 1:1 to the US dollar (USD).
This stablecoin, set to be backed entirely by US dollar deposits, short-term US government treasuries, and other cash equivalents, will be audited by a third-party accounting firm, with monthly attestations to be published by Ripple.
The move comes amidst a burgeoning stablecoin market, currently valued at around $150 billion and projected to surpass $2.8 trillion by 2028.
Recognizing the escalating demand for stablecoins offering trust, stability, and utility, Ripple aims to leverage its extensive experience in developing financial solutions for global institutions.
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.
— Ripple (@Ripple) April 4, 2024
That's why later this year we’re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.…
Brad Garlinghouse, CEO of Ripple, emphasized the significance of this step, stating, “This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto.”
Garlinghouse highlighted the success institutions have found by collaborating with compliant, crypto-native entities, underscoring Ripple’s track record and resilience across market cycles.
Launching a stablecoin is a natural step for Ripple as we bridge the gap between traditional finance and crypto. We have 1/ the years of experience 2/ regulatory footprint 3/ a strong balance sheet and 4/ a network with near global payout coverage, to offer the best of… https://t.co/GlyqhYl9ES
— Brad Garlinghouse (@bgarlinghouse) April 4, 2024
The stablecoin, slated for launch, will initially be available on the XRP Ledger (XRPL) and Ethereum (ETH) blockchains, with plans for expansion onto additional blockchains and decentralized finance (DeFi) protocols and applications in the future.
Monica Long, Ripple President, noted the pivotal role of issuing the stablecoin on XRPL and Ethereum, stating, “Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem.”
A high-quality USD stablecoin on the XRPL – with its decentralized exchange and features like issued currencies, auto-bridging (that uses XRP as the native currency to facilitate trades between other assets), and the AMM — will be a gamechanger for users and devs. https://t.co/uGC72bosfM
— David "JoelKatz" Schwartz (@JoelKatz) April 4, 2024
Key benefits of Ripple’s stablecoin include its enterprise-grade nature, compliance-first mindset, liquidity on the decentralized exchange (DEX), transparent reserve, and multichain compatibility.
Ripple’s stablecoin is expected to be a significant addition to its existing suite of solutions, which have facilitated global payments and custody services in numerous jurisdictions.
The stablecoin’s launch is anticipated later this year, pending regulatory approval.
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