Ripple Labs management announced plans to launch its own stablecoin pegged to the US dollar. According to the company’s Chief Technology Officer, David Schwartz, the asset is scheduled to be launched by the end of 2024.
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.
That's why later this year we’re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.…
— Ripple (@Ripple) April 4, 2024
The stablecoin will reportedly be backed by “USD deposits, short-term US government treasury securities, and other cash equivalents.” The asset will be launched on both the XRPL and Ethereum networks. Additionally, an independent company will be tasked with auditing the reserves.
“Issuing our stablecoin on the XRP Ledger and Ethereum will serve as a pivotal entry point to unlock new opportunities for institutional and DeFi use cases across multiple ecosystems,” said Ripple President Monica Long in a statement.
David Schwartz believes that the stablecoin will be able to compete with assets such as USDT and USDC. However, the primary focus of the new product will be on corporate clients and payment companies. Ripple aims to capture the market and remain in the digital asset sector for the long term.
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
The company’s management also hopes that the stablecoin launch will “breathe life” into the decentralized XRP Ledger ecosystem. As for the advantages Ripple will offer to customers, the emphasis will be on transparency and security of operations, according to Schwartz.
“These reserve assets will be audited by a third-party accounting firm, and Ripple will publish monthly attestations,” emphasized the company’s CTO.
