Ripple Unveils Plan for USD-backed Stablecoin to Boost Utility and Liquidity on XRP Ledger | Blockster

Ripple, the renowned provider of enterprise blockchain and crypto solutions, has unveiled plans to launch a stablecoin pegged 1:1 to the US dollar (USD).

—

This announcement marks a significant development in the crypto space, with Ripple's stablecoin set to be fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. The reserve assets backing the stablecoin will undergo rigorous auditing by a third-party accounting firm, and Ripple commits to publishing monthly attestations to ensure transparency and reliability.

Brad Garlinghouse, Ripple's CEO, expressed the strategic importance of this move, stating, "Issuing our stablecoin on the XRP Ledger and Ethereum will serve as a pivotal entry point to unlock new opportunities for institutional and DeFi use cases across multiple ecosystems."
“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."

Brad Garlinghouse, Ripple's CEO
"This move is also monumental for the XRP Ledger community, driving more use cases, liquidity and opportunities for developers and users," added Brad.

The decision to launch a stablecoin comes at a time when the stablecoin market is rapidly growing, with current valuations standing at approximately $150 billion and projected to exceed $2.8 trillion by 2028. There is clear demand for stablecoins that offer trust, stability, and utility, and Ripple aims to address this demand with its new offering.

Monica Long, Ripple's President, emphasized the significance of launching the stablecoin on the XRP Ledger, stating:
"Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem."

Monica Long, Ripple's President
Indeed, the XRP Ledger's native capabilities, including a decentralized exchange and automated market maker, make it an ideal platform for facilitating transactions with Ripple's stablecoin.

The benefits of Ripple's stablecoin are manifold:

Enterprise-Grade: Ripple specializes in blockchain-based enterprise grade solutions that financial institutions and enterprises need. Ripple will leverage both XRP and the stablecoin in its payment solution to further improve the customer experience and serve as the first enterprise use-case of the asset at scale. There is demand from Ripple’s customers in emerging markets to enable stablecoin payouts.
Compliance-First Mindset: Ripple is committed to regulatory compliance and has a growing license portfolio in key regions around the globe. The company and its subsidiaries collectively hold a New York BitLicense, nearly 40 money transmitter licenses across the US, a Major Payment Institution License from the Monetary Authority of Singapore, and a Virtual Asset Service Provider registration with the Central Bank of Ireland. Earlier this year, Ripple agreed to acquire Standard Custody, one of the few crypto companies that holds a NY Trust Charter, to expand its license footprint to better serve enterprise customers.
Liquidity on the Decentralized Exchange (DEX): While XRP is the native currency on the XRPL, the Ledger was built to support any type of asset issued to trade on the DEX and quickly settle anywhere in the world with low transaction costs. Bringing more credible assets on the DEX, such as Ripple’s stablecoin, will drive numerous benefits for users, developers, and apps.
Transparent Stablecoin Reserve: Backed by a 1:1 reserve of cash and cash equivalents, Ripple's stablecoin is designed to ensure transparency and reliability. Once the stablecoin is available, Ripple will publish monthly attestations of the assets.
Multichain Compatibility: The Ripple stablecoin will be issued on the XRP Ledger and Ethereum networks using XRPL native functionality and ERC20 token standards. Developers on both XRPL and ETH will be able to incorporate the Ripple stablecoin so that users can transact with stability, confidence, and trust. The Ripple stablecoin will expand native issuance to other blockchains, allowing users to benefit from cross-chain interoperability.

A Decade of Innovation in Enterprise Blockchain

For over 10 years, Ripple has been the industry leader in providing enterprise blockchain and crypto solutions. It was the first company to address the multi-trillion-dollar pain points associated with cross-border payments, utilizing blockchain and crypto at scale.

Ripple’s payment and custody infrastructure has experienced continuous global growth, with live custody offerings in 20 jurisdictions and payments solutions available in 80+ payout markets, representing more than 90% of the global foreign exchange market.