Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Ripple Announces the Launch of a Stablecoin Pegged to US Dollar

Ripple Announces the Launch of a Stablecoin Pegged to US Dollar

CryptopotatoCryptopotato2024/04/04 15:49
By:Wayne JonesMore posts by this author

Brad Garlinghouse expresses confidence in the move, stating Ripple will continue bridging the gap between traditional finance and crypto.

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

The asset will be backed entirely by US dollar deposits, short-term US government treasuries, and other cash equivalents.

Ripple CEO Confident on Launch

According to an April 4 press release , these reserve assets would undergo audits by a third-party accounting firm, with monthly attestations to be published for public scrutiny.

Brad Garlinghouse, Ripple’s CEO, expressed confidence in the move, stating, “This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto.”

The exec also highlighted the increasing success of institutions partnering with compliant, crypto-native players, citing Ripple’s track record and resilience through various market cycles.

He mentions the broader implications of the stablecoin launch for the crypto ecosystem. It will initially be available on the XRP Ledger (XRPL) and Ethereum (ETH) blockchains, with plans for expansion to additional networks and decentralized finance (DeFi) protocols in the future.

Monica Long, Ripple’s President, emphasized the transformative impact of issuing the stablecoin on the XRP Ledger. “Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem,” Long said.

Key Benefits

The benefits of Ripple’s stablecoin include its enterprise-grade nature, compliance-first mindset, liquidity on the Decentralized Exchange (DEX), transparent reserve, and multichain compatibility.

Specializing in blockchain solutions for financial institutions and enterprises, Ripple will integrate both XRP and its stablecoin into its payment system, meeting the growing demand for such payouts in emerging markets.

Ripple’s stablecoin will boost liquidity on the Decentralized Exchange (DEX) by providing a credible asset for trading on the XRPL. This move benefits users, developers, and applications by facilitating low-cost, quick settlements worldwide.

Ripple prioritizes regulatory compliance shown through its range of licenses globally, including a New York BitLicense and multiple money transmitter licenses in the US. The recent acquisition of Standard Custody is also a part of its regulatory efforts.

It will also be backed by a 1:1 reserve of cash and cash equivalents, ensuring transparency and reliability with regular monthly attestations of these being published once the stablecoin is launched.

The stablecoin will be issued on both the XRP Ledger and Ethereum networks, using XRPL native functionality and ERC20 token standards. This compatibility allows developers on both networks to incorporate the stablecoin, enabling users to transact securely across chains.

You Might Also Like:

  • Ripple With Major Announcement: Acquires Standard Custody Trust Company
  • Very Important Update Concerning Ripple (XRP)
  • Metaco CEO and CPO Reportedly Depart Following Ripple Acquisition
1

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Matrixport Included Developments That Will Affect Bitcoin in December in Its Weekly Report! Here Are the Details

Matrixport's latest weekly report highlights a number of positive factors that have underpinned Bitcoin's recent strong performance.

Bitcoinsistemi2024/11/15 20:00

Trump's Inflow Wave Has Ended! Spot Bitcoin and Ethereum ETFs Experience First Outflows Since Election!

It ended a wave of inflows and outflows in spot Bitcoin and Ethereum ETFs that has been ongoing since Donald Trump was elected president on November 5.

Bitcoinsistemi2024/11/15 19:55

The Scoop: Anti-crypto bias may have cost Democrats the election

A growing base of single-issue crypto voters have become frustrated by Democrats’ general opposition to the industry.This column is adapted from The Scoop newsletter.

The Block2024/11/15 19:22