Ripple Announces Launch of USD-Pegged Stablecoin on Ethereum and XRP Ledgers

Fintech firm Ripple plans to launch its U.S. dollar-pegged stablecoin, backed by U.S. dollars, treasuries, and cash equivalents, on Ethereum and XRP Ledger blockchains.

Ripple Announces Plans to Launch USD-Pegged Stablecoin Across Ethereum and XRP Ledgers

San Francisco, CA – March 9, 2023

Financial technology giant Ripple Labs, known for its RippleNet payment network and XRP cryptocurrency, has unveiled plans to introduce its own stablecoin, pegged to the U.S. dollar, across both the Ethereum and XRP Ledger blockchains.

Scheduled for release later this year, the as-yet-unnamed stablecoin will be fully backed by U.S. dollars, short-term U.S. government treasuries, and other cash equivalents. Ripple will provide monthly attestations of its holdings, which will be independently audited by a third-party accounting firm, ensuring the stability and transparency of the stablecoin.

Ripple's Chief Technology Officer, David Schwartz, expressed the company's belief in the immense growth potential of the $150 billion stablecoin market, which is projected to expand into a multi-trillion-dollar industry in the coming years. Schwartz emphasized Ripple's unique positioning to capitalize on this opportunity.

"We have established ourselves in both the institutional payments landscape and the XRP Ledger DeFi ecosystem," Schwartz said. "These two major domains represent significant use cases for stablecoins, and we are confident in our ability to make a competitive entry into this market."

The market for stablecoins is currently dominated by Tether (USDT) and USDC, but Ripple, with its strong financial standing, long-standing presence in the industry, and robust compliance practices, aims to differentiate itself in the space.

Schwartz highlighted the company's decision to establish a clear U.S. jurisdictional nexus for its stablecoin, opting against the approach taken by Tether, which is based in the British Virgin Islands. This move reflects Ripple's ambition to facilitate seamless integration between traditional finance and the emerging decentralized finance (DeFi) landscape.

"We envision a future where U.S. customers can seamlessly deposit stablecoins into their bank accounts," Schwartz said. "We aim to bridge the gap between enterprise and retail use cases, integrating stablecoins into the traditional financial sphere."

Ripple's decision to launch its stablecoin stemmed from a combination of factors, including demand from emerging markets with limited access to dollarized assets and growing interest from enterprise firms in adopting stablecoins. The company has actively engaged with customers to gauge their perspectives on existing stablecoins and identify areas for improvement.

The upcoming stablecoin will make its debut on both the Ethereum and XRP Ledger blockchains, with plans for expansion to additional blockchains in the future as demand and use cases evolve. Schwartz emphasized that the early announcement allows Ripple to gather feedback and assess potential growth opportunities.

"We have initial ideas about where we anticipate success and potential next steps," Schwartz noted. "However, we will remain agile and adjust our strategy based on market feedback."

Ripple's stablecoin launch represents a significant move in the company's ongoing efforts to expand its product offerings and position itself as a leader in the digital asset ecosystem. The introduction of a USD-pegged stablecoin will provide users with a reliable and stable store of value, facilitate cross-border transactions, and enhance the utility of decentralized finance applications across multiple blockchain platforms.