Ripple, the famous crypto platform, has revealed its intention to launch a USD-backed stablecoin. This coin will be pegged 1:1 to the U.S. dollar. It will exist on both the XRP Ledger and Ethereum networks. The announcement came through Ripple’s verified X account very recently.
The announcement highlighted Ripple’s recognition of the thriving stablecoin sector, estimated at around $150 billion. Ripple acknowledged forecasts indicating that the stablecoin market is poised to exceed $2.8 trillion by 2028. In response, Ripple declared its plan to launch a stablecoin directly linked to the USD, maintaining a 1:1 peg ratio.
Ripple’s decision to launch a stablecoin is a strategic move that goes beyond expanding its product line. It’s about expanding its influence and reaching into both institutional and decentralized finance (DeFi). This move not only opens up new possibilities but also strengthens Ripple’s payment setup, with the ultimate goal of fostering greater synergy between traditional and decentralized finance, effectively bridging the two worlds.
Ripple Trusted Stablecoin Expansion
Unlike many others, Ripple’s stablecoin is backed by a combination of U.S. dollars, government bonds, and cash. This unique structure, monthly third-party checks, and full deposit support ensure its reliability and complete backing. It’s a stable coin you can trust.
Also, Ripple knows crypto’s future relies on many chains working together. So, it’s launching this stablecoin on XRP Ledger and Ethereum. The goal is to help different chains talk to each other. Ripple wants more people to use the stablecoin. It plans to add support for more chains later.
In response to the announcement, Ripple CEO Brad Garlinghouse stated:
This marks a natural progression for Ripple as we strive to bridge further the divide between traditional finance and the realm of cryptocurrency. Moreover, this development holds immense significance for the XRP Ledger community, fostering additional use cases, liquidity, and avenues for developers and users alike.
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