Ripple unveil plans for stablecoin pegged to USD

ENTERPRISE blockchain Ripple has revealed plans to launch a stablecoin pegged to the US dollar.

Subject to regulatory approval, the token could be available by the end of the year.

Ripple say its stablecoin will be 100% backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. These reserve assets will be audited by a third-party accounting firm, and Ripple will publish monthly attestations.

The stablecoin market currently stands at around $150 billion, and is forecasted to exceed $2.8 trillion by 2028.

"This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto,” said Brad Garlinghouse (pictured), Ripple CEO.

“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.”

At launch, the stablecoin will be available on the XRP Ledger (XRPL) and Ethereum (ETH) blockchains, with plans to expand to additional blockchains and decentralised finance (DeFi) protocols and apps over time.

“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,” added Monica Long, Ripple President.

“The XRP Ledger’s native capabilities, including a decentralized exchange and automated market maker, were built to utilize XRP as the bridge asset. Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem.”

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