Ripple Prepares To Shake Up $150B Market With Imminent Launch Of New Stablecoin
April 04 2024 - 10:15AM
NEWSBTC
In a notable development, blockchain developer Ripple Labs recently
announced its plans to launch a stablecoin pegged 1:1 to the US
dollar (USD). Ripple Enters Booming Stablecoin Market
According to the company’s announcement on Thursday, the
stablecoin’s reserves will consist of US dollar deposits,
short-term US Treasury bills, and other undisclosed cash
equivalents. All of these will be audited by a third-party
accounting firm. Ripple plans to publish monthly certifications to
ensure transparency. With the stablecoin market currently valued at
around $150 billion, Ripple’s entry is significant. The market is
projected to exceed $2.8 trillion by 2028, highlighting the
potential for growth and adoption. Related Reading: XRP
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Turmoil Ripple CEO Brad Garlinghouse emphasized the importance of
partnerships with compliant, crypto-native players for success in
this space. He highlighted Ripple’s track record in launching new
products and acquiring companies across various market
cycles. Garlinghouse believes that this move is not only a
significant step for Ripple but will also positively impact the XRP
Ledger (XRPL) community, driving more use cases, liquidity, and
opportunities for developers and users. Institutional And DeFi
Adoption Across Multiple Ecosystems Initially, the stablecoin will
be available on the XRP Ledger and Ethereum (ETH) blockchains.
Ripple plans to expand its presence to additional blockchains and
decentralized finance (DeFi) protocols and applications.
Monica Long, Ripple President, stated that issuing the stablecoin
on XRPL and Ethereum will unlock new opportunities for
institutional and DeFi use cases across multiple ecosystems. Long
further stated: The XRP Ledger’s native capabilities, including a
decentralized exchange and automated market maker, were built to
utilize XRP as the bridge asset. Bringing a trusted stablecoin
onto XRPL will drive more adoption and development, contributing to
a vibrant ecosystem Related Reading: US Govt Moves $90 Million in
Bitcoin, ETH From Estonian Scammers Ultimately, Ripple’s stablecoin
is expected to launch later this year, pending regulatory approval
in the US market. The introduction of this stablecoin is a
significant development that has the potential to reshape the
stablecoin market while offering new opportunities for
institutions, developers, and users alike. Featured image from
Shutterstock, chart from TradingView.com
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