Ripple Labs, a leading real-time gross settlement company leveraging blockchain technology, has announced plans to launch a multichain stablecoin, which is pegged to the United States dollar at a ratio of 1:1. According to the announcement, the Ripple-backed stablecoin will be first be issued on the XRP Ledger using the XRPL native functionality and on the Ethereum network through an ERC-20 token standard.
Shortly, Ripple intends to expand to other blockchains, DeFi protocols, and applications to reach more users seamlessly.
What Ripple’s New Stablecoin Mean
Ripple has grown to a major web3 company through strategic acquisitions in the past few years, despite the notable headwinds from the ongoing lawsuit filed by the U.S. SEC. The launch of a fiat-backed stablecoin will solidify Ripple’s reputation as a powerhouse for interlinking traditional financial institutions and web3 space.
“Institutions entering this space are finding success by partnering with compliant, crypto-native players, and Ripple’s track record and resiliency speak for itself as we launch new products and acquire companies through multiple market cycles,” Brad Garlinghouse, Ripple’s CEO, noted.
The new Ripple-backed stablecoin comes after the XRPL network adopted a native Automated Market Maker (AMM) to improve XRP’s liquidity. With the XRPL network already having a built-in DEX, the introduction of a reputable stablecoin will enhance the adoption of the company’s payment products.
Impact on XRP Price Action
Following the announcement, which caught the attention of the entire crypto community, XRP price surged as much as 61 cents on Thursday during the early New York season.
The large-cap altcoin, with a fully diluted valuation of about $60 billion, is on the cusp of a major bullish uproar. From a technical standpoint, XRP price against the US dollar is retesting the bullish breakout from a macro-falling logarithmic trend.
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