$XRP Ripple is about to launch a stablecoin pegged to the US dollar, aiming to expand DeFi and institutional markets
Ripple has announced a grand plan to launch a stablecoin pegged to the US dollar, a move that is expected to attract widespread attention in the cryptocurrency market. The stablecoin will initially be available on the XRP Ledger and Ethereum blockchains, both of which are currently up 2.66% each. In a statement, Ripple President Monica Long emphasized that this move will open up new opportunities for institutional and decentralized finance (DeFi) use cases in multiple ecosystems.
Market background of stablecoins
Currently, the main US dollar-pegged stablecoins on the market are Tether's USDT and Circle Internet Financial's USDC. Ripple's stablecoin will be backed by US dollar deposits, short-term US Treasury bonds and other cash equivalents, and will be audited by a third-party accounting firm. Ripple promises to publish proofs monthly to enhance transparency and trust.
Potential impact of stablecoins
Ripple Chief Technology Officer David Schwartz said that although the team had plans to launch stablecoins long ago, they chose to issue them this year, mainly based on a deep understanding of market information and monitoring of economic factors. He also pointed out that while Ripple intends to gain a foothold in the stablecoin market, the company is more concerned about providing diversified options, especially in DeFi applications, to reduce concentration risks.
Future Outlook
Although Ripple's stablecoin will initially be available only on the XRP Ledger and Ethereum networks, the company plans to expand it to more blockchains, DeFi protocols and applications over time. This strategic layout shows Ripple's ambitions for the future cryptocurrency market.
And Ripple's inscription XRPS, as the leading ecological digital currency of Ripple, will take on more functions such as Ripple DeFi, NFT, etc.
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