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- Ripple’s impending stablecoin launch aims to penetrate the $150 billion stablecoin market, potentially influencing XRP’s price and overall adoption.
- The stablecoin, pegged to the U.S. dollar, positions Ripple as a direct competitor to dominant players like Tether and Circle.
Ripple, a leading entity in the cryptocurrency sector, is gearing up to unveil a stablecoin tied to the U.S. dollar later this year. This strategic pivot occurs amidst challenges in Ripple’s existing business model, which is centered around the XRP Ledger, On-Demand Liquidity, and RippleNet protocols for financial services. Ripple’s XRP has faced hurdles in gaining steady enterprise adoption, largely due to its price volatility.
As detailed in a CNF YouTube video (link provided), Ripple’s forthcoming stablecoin seeks to offer a stable and reliable option in the highly competitive and profitable stablecoin arena, currently dominated by Tether and Circle. Ripple’s CEO, Brad Garlinghouse, is positive about the company’s prospects in this sector, despite facing a potential $2 billion fine from the SEC.
Ripple’s history is marked by strong community support and notable legal disputes, including its SEC lawsuit over XRP’s security status, as updated by CNF. Despite forming several partnerships, Ripple has seen limited adoption of its financial services, with key collaborations like Santander and MoneyGram not fully realized. Diameter Pay’s CEO, David Lighton, recognizes Ripple’s technical strength but notes a decline in marketing efforts.
Launch of the Stablecoin: Aiming to Boost XRP Ledger Usage
Recognizing the central role of stablecoins in the DeFi sphere, Ripple envisions the introduction of its stablecoin as a means to draw users to the XRP Ledger ecosystem.
Ripple President Monica Long notes,
The XRP Ledger’s inherent features, including a decentralized exchange and automated market maker, are designed to leverage XRP as the bridge currency. Introducing a credible stablecoin to the XRPL is anticipated to foster increased adoption and development, enhancing the overall ecosystem.
Tether (USDT) currently leads the stablecoin market, boasting a circulation of over $106 billion across various blockchains, per CoinMarketCap data. The other significant contender is USD Coin (USDC), with a market cap just shy of $33 billion.
Diameter Pay’s CEO, David Lighton, having previously collaborated with Ripple on an xRapid pilot (now known as Ripple ODL), points out,
Stablecoins hold great potential, but regulatory clarity remains a challenge.
Stablecoin Launch: Aiming to Dominate the $150 Billion Market and Bolster XRP
At present, Tether USD reigns supreme in the stablecoin domain, with a market cap exceeding $100 billion, as reported by CNBC. Ripple’s entry into the $150 billion stablecoin market with its U.S. dollar-backed stablecoin sets the stage for a direct competition with industry titans such as Tether (USDT) and Circle (USDC).
As shown in the chart below, the price of XRP currently stands at $0.5797, experiencing an upward trajectory of 1.86% in the past day and decreased at 6.61% over the last week.
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