š„š„š„ Ripple, the company behind the XRP Ledger, has announced its entry into theĀ stablecoinĀ market, a sector currently dominated by players like Tetherās USDT and Circleās USDC.
The new stablecoin, yet to be named, will be pegged to the US dollar and is expected to launch later this year.
Ripple to Launch a Stablecoin
RippleāsĀ offeringĀ aims to distinguish itself by being ā100% backed by US dollar deposits, short-term US government Treasuries, and other cash equivalents.ā This move places a strong emphasis onĀ securityĀ and stability.
According to Ripple, the decision to venture intoĀ stablecoinsĀ comes at a time when the market is experiencing significant growth. Indeed, projections indicate it could expand to over $2.8 trillion by 2028.
The company plans to deploy its stablecoin on the XRP Ledger and theĀ EthereumĀ blockchain, utilizing the ERC-20 token standard for broader compatibility and utility.
This move into stablecoins is noteworthy for the company, particularly asĀ Ripple navigates a legal battleĀ with the US Securities and Exchange Commission.
Brad Garlinghouse, Rippleās Chief Executive Officer,Ā highlightedĀ the strategic importance of the new stablecoin. He emphasized the aim for stability and transparency, noting plans for monthly public audits by a reputable accounting firm to ensure user accountability and trust.