Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says

Editor's Pick

Ripple’s New Stablecoin Looks to Boost XRP Adoption

Ripple plans to introduce a stablecoin pegged to the US dollar this year, as projections estimate the market will surpass $2.8t by 2028.

The stablecoin will be fully collateralized by US dollar deposits, along with short-term US government treasuries and other cash equivalents, Ripple said on Thursday.

“These reserve assets will be audited by a third-party accounting firm, and Ripple will publish monthly attestations,” Ripple said. It did not specify which firm would conduct the audits.

The move positions Ripple as a competitor to established leaders in the stablecoin market, like Tether and Circle. Notably, PayPal entered the fray last year with the launch of its own USD-backed stablecoin, PayPal USD (PYUSD), on Ethereum.

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.

That’s why later this year we’re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.…

— Ripple (@Ripple) April 4, 2024

Tether co-founder William Quigley told Cryptonews that PayPal would be unlikely to achieve dominance in this market, particularly outside the US. However, PayPal’s stablecoin currently holds the 12th position globally, boasting a market capitalization of $190m.

Stablecoins represent a distinct class of cryptocurrency specifically engineered to exhibit minimal price fluctuations. This stability is achieved by pegging their value to external assets, such as traditional fiat currencies or financial instruments.

As a result, they offer a significantly less volatile alternative compared to established cryptocurrencies like Bitcoin and Ethereum. This makes them particularly attractive to risk-averse investors looking for a more stable investment vehicle.

XRP Ledger Gets Boost with Stablecoin

Ripple CEO Brad Garlinghouse said that institutions entering the stablecoin market 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,” he added.

The move also drives “more use cases, liquidity and opportunities for developers and users,” he said.

Ripple’s stablecoin will initially launch on the XRP Ledger (XRPL) and Ethereum (ETH) blockchains. Eventually, Ripple plans to expand its availability to additional blockchains, DeFi protocols, and various applications.

The decision to launch on both XRPL and Ethereum facilitates cross-chain interoperability, a crucial feature for seamless interaction between disparate blockchain networks.

Emerging Markets Drive Demand for Ripple’s Stablecoin Payouts

Ripple intends to integrate both XRP and the stablecoin into its payment solutions, aiming to enhance customer experience and establish the first large-scale enterprise use case for the asset. Notably, Ripple’s customers in emerging markets have expressed interest in facilitating stablecoin payouts.

The initial launch is reportedly targeted at the US market. But the network hasn’t ruled out the possibility of introducing regional variations for other markets such as Europe and Asia.

The post Ripple’s New Stablecoin Looks to Boost XRP Adoption appeared first on Cryptonews.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...


    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024