In a release, Ripple executives said they see opportunities in the stable coin market, which currently exceeds $150 billion and is led by Tether and its stable coin USDT.
David Schwartz, Ripple's chief technology officer, said Ripple's financial strength, regulatory compliance and backing licenses allow it to compete with dominant stable coins such as #Tether and #USDT .
We believe we are uniquely positioned to enter this market competitively. These are the two big groups using stable coins today.
The #Ripple executive added that one of the reasons for launching stable coins was to give Ripple's decentralized blockchain #XRP Ledger (XRPL) another meaningful asset besides XRP.
Currently, XRP Ledger has its own features such as a decentralized exchange, issuance of custom tokens and stable coins, consensus network and other tools. Thus, the new steblecoin has the potential to gain widespread acceptance in the community and become a catalyst that will push XRP to the $3 level.
Final details (including the name of the stablecoin) have yet to be revealed, but the launch is scheduled for 2024. So far, the company has stated that this launch period will be used to assess actual demand and determine the next blockchain to launch a steblecoin in the near future.
According to CoinMarketCap, at the time of writing, Ripple's main competitor, Tether USDT, remains in the top three most traded cryptocurrencies in the crypto market with a market capitalization of over $107 billion and a whopping daily volume of $65.7 billion. Therefore, Ripple will have to endure stiff competition to become the new giant amongst the stablecoins.
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