Ripple Reveals Plans to Launch USD-Backed Stablecoin
Key Takeaways
- Ripple announced plans to launch a US dollar-backed stablecoin in a bid to gain stablecoin market share against giants such as USDC and USDT.
- The company emphasizes a ‘compliance-first’ approach, backed by assets including US dollar deposits, short-term US government treasury bonds and other equivalents.
- Ripple’s stablecoin strives to maintain the highest level of transparency and cater to a broader market beyond XRP.
Ripple has been released We plan to introduce a stablecoin pegged to the US dollar at a 1:1 ratio. We have taken a bold step into a market dominated by giant companies such as Tether (USDT) and USD Coin (USDC).
The new stablecoin is Collateralized by U.S. dollar deposits, U.S. short-term Treasury bills and other equivalents; To ensure full transparency, reserves and monthly proofs are published, audited by an independent company.
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
Ripple is The market value is $150 billion and is expected to grow to over $2.8 trillion by 2028. This expected growth, and the fact that it is currently dominated by only a few major companies, Great opportunity for new entrants.
Ripple CEO Brad Garlinghouse sees this as a natural step for the company to continue integrating cryptocurrency with traditional finance. He said:
Institutions entering this space are finding success by partnering with compliant cryptocurrency-based players, and Ripple’s track record and resilience speaks for itself as it launches new products and acquires companies through multiple market cycles.
To secure a leading position in this market, Ripple aims to: We focus on transparency and reliability by having an independent firm audit financial reserves and share monthly updates. This approach is intended to address concerns similar to those faced by Tether early on regarding the security of funds and the authenticity of reserve claims.
Stablecoins are designed as follows: High-quality solutions for banks and other financial companies, In line with Ripple’s efforts to comply with regulations and increase its licensing portfolio globally.
David Schwartz, Ripple’s chief technology officer, said this diversification enable Ripple Addresses Markets and Opportunities Currently Unreachable by XRP:
Having multiple paths to give your customers a better experience means more customers. If we only did things with XRP, we would have to say no to our customers where they couldn’t use XRP.
stablecoin It is scheduled to debut on XRP Ledger and Ethereum. We plan to expand to more blockchain and decentralized finance (DeFi) applications.
Through this venture, Ripple provides a stable and compliant digital currency, opening new avenues for institutional and DeFi use cases across the cryptocurrency ecosystem.
Ripple also recently made headlines when the U.S. Securities and Exchange Commission fined it $1.95 billion for violating federal securities laws.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst with an interest in data-driven and fact-based content, as well as content targeting both Web3 native users and industry newcomers.
Aaron is our go-to guy for all things digital currency. With a huge passion for blockchain and Web3 education, Aaron is working to transform the space as we know it and make it more accessible to complete beginners.
Aaron has been quoted in several popular media outlets and is a published author himself. In his spare time, he enjoys researching market trends and looking for the next supernova.
