Ripple Plans to Launch USD-Pegged Stablecoin – Fintech Singapore

Ripple, a provider of enterprise blockchain and crypto solutions, plans to introduce a stablecoin tied directly to the US dollar (USD), pending regulatory approvals.

This forthcoming stablecoin is set to be fully backed by a mix of US dollar deposits, short-term US government securities, and similar cash equivalents, with a rigorous auditing process in place by an independent accounting firm. Ripple also plans to issue monthly attestations to maintain transparency.

The company’s new stablecoin will be integrated into the XRP Ledger (XRPL) and the Ethereum blockchain at launch, with future expansions planned across various blockchains and the decentralised finance (DeFi) ecosystem.

With the stablecoin market currently valued at approximately US$150 billion and expected to soar to over US$2.8 trillion by 2028, Ripple aims to cater to the increasing demand for stable and reliable digital currencies.

Ripple’s venture into the stablecoin arena promises several benefits. It leverages its blockchain technology to offer enterprise-grade solutions tailored for financial institutions and businesses. The stablecoin aims to improve the customer experience in payments and represents a significant use case in emerging markets for stablecoin disbursements.

A “compliance-first” approach underscores Ripple’s commitment to adhering to regulatory standards worldwide. The company has an extensive portfolio of licenses, including a New York BitLicense and a Major Payment Institution License from the Monetary Authority of Singapore, among others. This regulatory compliance extends to the new stablecoin, ensuring it meets global standards.

The introduction of Ripple’s stablecoin is expected to enhance liquidity on the Decentralised Exchange (DEX) of the XRPL. The DEX, designed to support a variety of assets for global trade with low transaction costs, will benefit from the credibility and utility the stablecoin brings.

Moreover, the stablecoin’s design for multichain compatibility, initially available on the XRP Ledger and Ethereum, underscores Ripple’s commitment to interoperability across different blockchain ecosystems.

Brad Garlinghouse

“This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto. 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.

This move is also monumental for the XRP Ledger community, driving more use cases, liquidity and opportunities for developers and users.”

said Brad Garlinghouse, CEO of Ripple.

Monica Long

“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.

The XRP Ledger’s native capabilities, including a decentralised exchange and automated market maker, were built to utilise XRP as the bridge asset. Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem.”

added Monica Long, Ripple’s President.

Featured image credit: Edited from Freepik

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• Source: https://fintechnews.sg/94291/digitalassets/ripple-plans-to-launch-usd-pegged-stablecoin/