In a notable development, blockchain developer Ripple Labs recently announced plans to launch a stablecoin pegged 1:1 to the US dollar (USD).
Ripple enters the fast-growing stablecoin market
According to the company, announcement On Thursday, the stablecoin’s reserves will consist of US dollar deposits, short-term US Treasury bills, and other undisclosed cash equivalents. All of these are audited by a third-party accounting firm. Ripple plans to issue a monthly certificate to ensure transparency.
Ripple’s entry is significant as the stablecoin market is currently worth around $150 billion. The market is projected to exceed $2.8 trillion by 2028, highlighting the potential for growth and adoption.
Ripple CEO Brad Garlinghouse emphasized the importance of partnering with compliant crypto-native players to succeed in this space. He highlighted Ripple’s track record in launching new products and acquiring companies across various market cycles.
Garlinghouse said this move is not only an important step for Ripple, but will also have a positive impact on the XRP Ledger (XRPL) community, driving more use cases, liquidity, and opportunities for developers and users. believe.
Institutional and DeFi adoption across multiple ecosystems
Initially, the stablecoin will be available on the XRP Ledger and Ethereum (ETH) blockchains. Ripple plans to expand its presence into further blockchain and decentralized finance (DeFi) protocols and applications.
Ripple President Monica Long said that issuing stablecoins on XRPL and Ethereum opens up new opportunities for institutional investors and DeFi use cases across multiple ecosystems. Long further states:
The native features of the XRP Ledger, including decentralized exchanges and automated market makers, were built to utilize XRP as a bridge asset.Introducing a trusted stablecoin to XRPL will encourage more adoption and development, contributing to a vibrant ecosystem
Ultimately, Ripple’s stablecoin is expected to be launched in the US market later this year, pending regulatory approval. The introduction of this stablecoin is a significant development that has the potential to reshape the stablecoin market while providing new opportunities for institutions, developers, and users alike.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell, or hold an investment, and investing naturally involves risk. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.
