On Thursday (April 4), Ripple said it would release a new stablecoin to compete with USDT and USDC.
The stablecoin market is currently around $150 billion and is forecast to exceed $2.8 trillion by 2028. To meet this growing demand for stablecoins, Ripple will release a separate stablecoin based on its experience. its decade of building practical financial solutions for organizations around the world.
Report from Ripple, April 4, 2024
Stablecoins will be backed 1:1 by USD, short-term US government bonds and other “cash equivalents”. These reserve assets will be audited by an independent accounting firm and Ripple will publicly confirm them on a monthly basis, the Ripple report said.
“This is a natural step for Ripple to continue bridging the gap between traditional finance and cryptocurrency,” said Brad Garlinghouse, Ripple CEO. “Organizations participating in this space are finding success by working with compliant, crypto-savvy partners. Ripple's track record and resilience speak for themselves, as we've launched new products and acquired companies across various market cycles.”
This move is also important for the XRP Ledger community, promoting more use cases, liquidity and opportunities for developers and users.
Immediately after the announcement, XRP price skyrocketed to 0.6136 USD. At the time of writing, the price of XRP has dropped to $0.5877, but still recorded a 1.43% increase over the past 24 hours.
