Crypto and blockchain leader Ripple is set to introduce its own dollar-pegged stablecoin.
With the stablecoin market valued at approximately $150 billion, Ripple emphasizes the strong demand for stablecoins that offer trust, stability, and utility. The company plans to launch its stablecoin later this year, pending regulatory approval. The token will be fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents, with reserve assets subject to audits by a third-party accounting firm.
Brad Garlinghouse, CEO of Ripple, stated, “This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto. Institutions entering this space are finding success by partnering with compliant, crypto-native players, and Ripple’s track record and resiliency speaks for itself as we launch new products and acquire companies through multiple market cycles.”
Initially, the stablecoin will be available on the XRP Ledger and Ethereum blockchains, with plans to expand to additional blockchains and decentralized finance (DeFi) protocols and applications over time.
The stablecoin market is currently led by Circle’s USDC and Tether’s USDT, although other major players like PayPal have also entered the arena.
Ripple is currently engaged in a legal dispute with the Securities and Exchange Commission regarding its XRP token.