Ripple Labs, an American blockchain payment company, announced The plan is to launch a stablecoin asset that rivals the current leading alternative currencies on the market.
Ripple Labs Promotes Stablecoins and Transparency
As the company pointed out, its stablecoin will be game-changing due to concerns about transparency regarding reserves. As the company pointed out, the stablecoin is pegged to the US dollar in a 1:1 ratio, and its reserves depend on multiple assets. These assets outlined include U.S. dollar deposits, short-term U.S. Treasury securities, and other cash equivalents.
To strengthen the stablecoin’s transparency strategy, Ripple Research Institute said it will conduct a thorough audit by consulting third-party institutions and issue monthly certificates immediately after launch.
“This is a natural step for Ripple to continue bridging the gap between traditional finance and cryptocurrencies,” said Ripple CEO Brad Garlinghouse. “Institutions entering this space are finding success by partnering with compliant crypto-native players, as we launch new products and acquire companies through multiple market cycles. , Ripple’s track record and resilience speaks for itself. This move is also monumental for the XRP Ledger community, driving more use cases, liquidity, and opportunities for developers and users.”
As a payments company, Ripple Labs has faced some limitations in its ability to innovate due to a lengthy lawsuit with the U.S. Securities and Exchange Commission (SEC).but bagging a partial victory Last July, the company entered a new era. The proposed stablecoin would further reduce pressure on XRP, a related digital currency that has been used as a payment token to power on-demand liquidity (ODL) services for many years.
Multi-blockchain support
According to the announcement, Ripple Labs’ stablecoin is XRP Ledger (XRPL) At the time of release. To further its decentralization agenda, the company also hosts a stablecoin on Ethereum (ETH) and said it plans to expand this scope to other protocols over time.
The stablecoin market is an essential market for the blockchain ecosystem.and tether (USDT) and USD Coin (USDC) are dominant with over 106 billion and 32.8 billion units in circulation, respectively, and Ripple is looking to connect with companies whose alternative stablecoins will gain huge market share from Tether. I believe I have it.
Ripple highlighted the benefits that stablecoin adopters will gain. This includes, but is not limited to, multi-chain compatibility, DEX liquidity, and enterprise-grade technology.
The published content may include the personal opinions of the author and may be subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
