Ripple announces the release of USD-backed Stablecoin

Ripple is a well-known service provider for crypto solutions and enterprise blockchain. It has announced plans to launch a stablecoin pegged 1:1 to the US dollar (USD). US dollar deposits, short-term US government treasuries, and other cash equivalents will fully fund Ripple’s stablecoin. A third-party accounting company will initially audit the reserve assets. Monthly attestations will be released by Ripple concurrently with this.

The stablecoin market is currently valued at $150 billion, and by 2028, it is expected to grow to over $2.8 trillion, indicating an increased need for stability, utility, and trust in this space. By releasing stablecoin, Ripple hopes to satisfy the increasing demand from users. 

Financial institutions can benefit from this by gaining almost ten years of experience in developing practical financial solutions globally. The primary blockchains where the stablecoin will be accessible during launch are XRP Ledger and Ethereum, with the goal of quickly expanding DeFi and additional blockchains.

The essential benefits of these stablecoins by Ripple are as follows:

  • Compliance-First Mindset: Ripple is associated with regulatory compliance. It has an ongoing license portfolio regarding key regions around the globe. The company, along with its subsidiaries, collectively holds a New York BitLicense, which is equal to 40 money transmitter licenses around major parts of the US. It also includes a Virtual Asset Service Provider registration with the Central Bank of Ireland and a Major Payment Institution License from the Monetary Authority of Singapore.
  • Enterprise-Grade: Ripple is specifically focused on creating blockchain-based enterprise-grade solutions for financial institutions and acquiring the needs of enterprises. Both stablecoin and XRP will be leveraged by Ripple, considering its payment solutions for further improvement of the consumer experience. It even serves as the first enterprise use case for asset scale. There is an ongoing demand from Ripple consumers in emerging markets for stablecoin payouts.
  • Transparent Stablecoin Reserve: The main sources of funding are 1:1 cash reserves and cash equivalents. Transparency and dependability are key features of Ripple’s stablecoin. Following its debut, Ripple hopes to publish monthly asset attestations.
  • Liquidity on the Decentralized Exchange: The Ledger was aimed at constructing support for assets that are issued on the DEX when XRP is considered a native currency on the XRPL. Through this, a quick settlement can be placed with lower transaction costs. It can bring more credible assets to the DEX, including the stablecoin of Ripple. It can enhance essential benefits for developers, users, and apps.
  • Multichain Compatibility: This stablecoin of Ripple will be provided on Ethereum networks and the XRP Ledger by using the native functionalities of XRPL and the token’s ERC20 standardization. Developers from both ETH and XRPL can align the stablecoin of Ripple for users. This can enable users to benefit from cross-chain interoperability and establish stable transactions with trust and confidence.

Through this, Ripple’s stablecoin is assumed to enhance its availability, which is subject to regulatory approval and enhances the boundaries of blockchain.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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