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Blockchain solutions company Ripple has unveiled its strategy to launch a stablecoin pegged to the U.S. dollar, aiming to boost liquidity on the XRP Ledger.
Ripple Set to Introduce U.S. Dollar-Linked Stablecoin, Aiming for Wider Crypto Adoption
In a statement released on Thursday, Ripple revealed its intention to introduce a stablecoin token linked to the USD, ensuring a consistent 1:1 value ratio with the U.S. dollar. This initiative will be supported by a combination of U.S. dollar deposits, short-term government securities from the U.S., and corresponding cash reserves, as shared by Ripple. Additionally, the firm highlighted that these financial underpinnings will undergo frequent reviews by an external accounting entity.
“This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto,” Brad Garlinghouse, Ripple’s CEO remarked on Thursday. “Institutions entering this space are finding success by partnering with compliant, crypto-native players and Ripple’s track record and resiliency speaks for itself, as we launch new products and acquire companies through multiple market cycles.”
Garlinghouse highlighted the significance of this initiative for the XRP Ledger community, noting it will enhance use cases, liquidity, and opportunities for both developers and users. Ripple also mentioned that the stablecoin will initially be accessible on the XRP Ledger and Ethereum, with ambitions to broaden its availability across more blockchain platforms and decentralized finance applications.
Following the Ripple announcment, Circle CEO Jeremy Allaire welcomed the company to the stablecoin ecosystem. “Welcome to the dollar stablecoin party, [Ripple],” Allaire wrote on X. “It is encouraging to see more companies taking a compliance-first approach to building onchain dollars. Congrats on taking the plunge!”
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