Ethereum

Stablecoin

2024

DeFi

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ripple plans to launch a US stablecoin in the $150 billion market.</li>
 <li>The token will be 100% backed by US dollar deposits, short-term US Treasurys, and other cash equivalents.</li>
</ul>
<p>The creator of XRP Ledger, <a href="https://crypto.ro/en/news/ripple-hit-by-potential-112m-hack-as-xrp-drops-5/" rel="noopener noreferrer nofollow">Ripple</a>, is reportedly introducing its own stablecoin pegged to the price of the US dollar.</p>
<p>In the official announcement, the crypto firm describes the booming stablecoin market, which is currently about $150 billion and projected to surge to $2.8 trillion by 2028. Ripple also highlights the demand for trust, stability, and utility in such a market.</p>
<p>These are the triggers for the firm’s decision to launch a stablecoin pegged 1:1 to the USD on the XRP Ledger and<a href="https://crypto.ro/en/news/ethereum-at-potential-risk-due-to-restaking-warns-coinbase/" rel="noopener noreferrer nofollow"> Ethereum</a>.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
 <p lang="en" dir="ltr">1/ The stablecoin market is booming – around $150B today, and projected to soar past $2.8T by 2028. There's a clear demand for trust, stability, and utility.</p>
 <p>That's why later this year we’re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.…</p>
 <p>— Ripple (@Ripple) <a href="https://twitter.com/Ripple/status/1775873224531665051?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">April 4, 2024</a></p>
</blockquote>
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<h2 id="extending-ripple-s-reach-into-institutional-and-defi-realms">Extending Ripple’s reach into institutional and DeFi realms</h2>
<p>According to the announcement shared via X, Ripple says that this move will mark the firm’s entrance into both institutional and DeFi realms.</p>
<p>It will diversify use cases and enhance their payment infrastructure, bringing the worlds of traditional finance and DeFi together.</p>
<p>The stablecoin will be reportedly backed by US dollar deposits, US government bonds, and cash equivalents, with Ripple pledging transparency with monthly third-party attestations, ensuring reliability and trust.</p>
<h2 id="the-future-of-crypto-is-multichain-ripple-says">The future of crypto is multichain, Ripple says</h2>
<p>The firm also highlighted the importance of stablecoins as an entry point to DeFi, noting that bringing a trusted, enterprise-grade stablecoin to the XRP Ledger will bring more use cases and opportunities for both users and devs.</p>
<p>Ripple notes that the future of crypto is multichain, and launching the stablecoin on both XRPL and Ethereum will pave the way for cross-chain interoperability.</p>
<p>Ripple’s move aims more than innovation in the industry, and, according to their reports, the firm aims to set the stage for a more robust crypto landscape.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
 <p lang="en" dir="ltr">6/ Ripple's move into stablecoins isn't just about innovation; it's about contributing to the <a href="https://twitter.com/hashtag/XRPL?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#XRPL</a> ecosystem and setting the stage for a more robust and diverse crypto landscape.</p>
 <p>Learn more about the Ripple stablecoin: <a href="https://t.co/s770qUys8Y" rel="noopener noreferrer nofollow" target="_blank">https://t.co/s770qUys8Y</a></p>
 <p>— Ripple (@Ripple) <a href="https://twitter.com/Ripple/status/1775873232874185173?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">April 4, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>Ripple President, Monica Long, addresses the decision, saying that a trusted stablecoin on XRPL will drive more adoption and development to the ecosystem:</p>
<blockquote>
 <p>“The XRP Ledger’s native capabilities, including a decentralized exchange and automated market maker, were built to utilize XRP as the&nbsp;<a title="auto-bridging blog" href="https://dev.to/ripplexdev/xrpl-feature-spotlight-the-power-of-auto-bridging-2p2i" rel="noopener noreferrer nofollow" target="_blank">bridge asset</a>. Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem.”</p>
</blockquote>
<p>In their <a href="https://ripple.com/ripple-press/ripple-to-issue-usd-backed-stablecoin-bringing-more-utility-and-liquidity-to-xrp-ledger/" rel="noopener noreferrer nofollow" target="_blank">official announcement</a>, Ripple also addressed the key benefits of such a stablecoin, which include the following: enterprise-grade solutions, compliance-first mindset, liquidity on DEX, transparent stablecoin reserve, and multichain compatibility.</p>

Ripple To Launch U.S. Dollar-Backed Stablecoin on XRP Ledger and Ethereum

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