Leading provider of enterprise blockchain and crypto solutions, Ripple, has announced plans to launch a stablecoin pegged 1:1 to the US dollar (USD).
The crypto provider’s new stablecoin will be 100% backed by USD deposits, short-term US government treasuries and other cash equivalents.
Ripple says reverse assets will be audited by a third-party accounting firm, with Ripple set to publish monthly attestations.
Ripple: More utility to XRP Ledger
Ripple’s latest news marks its first foray into what is a burgeoning stablecoin market – which, for many investors, represents a less volatile means of engaging with the cryptocurrencies.
The data backs this up, with the stablecoin market worth an estimated US$150bn today. And, in just four years, Ripple predicts the market will exceed a staggering US$2.8tn.
This is why Ripple is tapping into the stablecoin space today, leveraging its decade-plus of experience in building real-world financial solutions for institutions around the world.
Last year, The People's SCE CEO and Co-Founder, Bernhard Blaha, spoke to us about the emerging value of stablecoins to open up new markets for businesses worldwide.
Now, Brad Garlinghouse, Ripple CEO, says: “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.
“This move is also monumental for the XRP Ledger community, driving more use cases, liquidity and opportunities for developers and users.”
Upon its launch, Ripple’s new stablecoin will be available on both the XRP Ledger and Ethereum blockchains. And, in the coming months, Ripple plans to expand its new stablecoin to additional blockchains and decentralised finance (DeFi) protocols.
