According to a report by the Financial Times, San Francisco-based company Ripple is on track to launch a dollar-backed stablecoin.
With such a move, the company, which is best known for its association with the controversial XRP cryptocurrency, plans to build a bridge between crypto and traditional finance, making it possible to use blockchain technology for trading securities.
As noted by Ripple, the stablecoin market has ballooned to a whopping $150 billion. Tether's USDT stablecoin alone is worth $106 billion, according to the latest data provided by CoinGecko.
The new stablecoin will be fully backed by dollar deposits, cash equivalents, and government bonds. Ripple claims that it will be conducting attestations on a monthly basis.
Ripple has pitched the new product as an "enterprise-grade" stablecoin with a "compliance-first mindset."
More use cases
Ripple's upcoming stablecoin will be launched simultaneously on Ethereum and the XRP Ledger. In the future, the stablecoin's issuance will also be expanded to other blockchains, according to the company's announcement.
The company believes that its new product will be able to attract more liquidity while generating more use cases.
In his statement, Ripple CEO Brad Garlinghouse described his company's foray into the stablecoin sector as "monumental" for the XRP Ledger community.
