Ripple Plans to Launch USD Stablecoin On XRP Ledger

Ripple Labs, the parent company of the digital coin XRP, has announced plans to launch its USD-pegged stablecoin this year. Speaking to reporters, Brad Garkinghouse, Chief Executive Officer of the company stated that, the stablecoin will be backed by a one-to-one reserve of US dollar deposits, short-term US government treasuries, along with other cash equivalents. 

Ripple’s stablecoin will initially be available on the XRPL(XRP Ledger) and the Ethereum (ETH) blockchains using XRPL native functionality and ERC20 token standards but plans to expand to additional networks and decentralized finance (DeFi) protocols in the future.

A press release on April 4, revealed that the stated reserve assets would be subjected to audits by a third-party accounting firm, accompanied by published monthly updates to ensure transparency and reliability. Brad Garlinghouse also emphasized the growing success of institutions and crypto-native companies partnering with compliant and lauded Ripple’s resilience in the face of the different market cycles throughout the years. 

“This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto”, he stated, adding that he has the utmost confidence in the company’s latest decision. Garlinghouse also highlighted the broader effects of the stablecoin launch on the crypto ecosystem. 

Ripple, after the roll out of its stablecoin, will integrate it as well as XRP into its payment system, thanks to its specialization in blockchain solutions for financial institutions and enterprises. 

The move, according to the company, will meet the growing demand for such payouts in emerging markets and will be of great benefit to users, developers, and applications by facilitating low-cost, quick payments across the globe.

Senior vice-president at Ripple, Markus Infanger, stated that the token could position itself as a “portal” that bridges the gap between traditional financial space and cryptocurrency markets.

“Our assessment of the market shows very clearly stablecoins are playing an important role. They’re here to stay and they’ve been growing significantly, and we firmly believe the growth will continue to be very strong,” he stated.

 

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