Ripple Labs, a prominent blockchain developer of the cryptocurrency XRP, has announced ambitious plans to throw a new stablecoin pegged to the US dollar at a 1:1 ratio. This initiative marks Ripple's entry into the competitive stablecoins market, which currently boasts a valuation of around US$150 billion.
According to statements made last Thursday, Ripple assures that the reserves of the new stablecoin will be made up of a combination of deposits in US dollars, short-term US Treasury bonds, among other cash equivalents, the details of which remain confidential. A third auditing firm will be responsible for inspecting these assets, with Ripple committing to offering monthly certifications to promote transparency.
Ripple's entry into this sector is not only notable for its growth potential – with projections pointing to a $2,8 trillion market by 2028 – but also for what it represents for the XRP Ledger (XRPL) ecosystem. Brad Garlinghouse, CEO of Ripple, highlighted the vital role of partnerships with crypto-native and regulated entities for prosperity in this new territory. Garlinghouse emphasized Ripple's commitment to innovation and expansion, citing the company's track record of launching new products and acquiring businesses across various market cycles.
“This move is not only a milestone for Ripple but will also greatly benefit the XRPL community by bringing more use cases, liquidity and opportunities to developers and users,” said Garlinghouse. The new stablecoin will initially be launched on the XRPL and Ethereum blockchains, with plans to expand to other blockchains and DeFi (decentralized finance) ecosystems.
Monica Long, president of Ripple, also spoke about the positive impact that the issuance of this stablecoin will have, especially on XRPL and Ethereum, opening doors for institutional and DeFi use cases in multiple ecosystems. “The issuance of our stablecoin on these platforms will leverage the native functionalities of the XRP Ledger, further enabling adoption and development,” commented Long.
Expected to launch later this year, subject to regulatory approval in the US, Ripple's stablecoin is expected to be a transformative element in the market, promising new opportunities for institutions, developers and users.
At the time of publication, the XRP price it was quoted at US$0,6026 with an increase of 4% in the last 24 hours.
