Ripple Unveils Plans for USD-Pegged Stablecoin on Ethereum and XRP Ledger

Ripple is creating a new stablecoin pegged to the US dollar and backed by cash and US government treasuries. The stablecoin will initially launch on Ethereum and the XRP Ledger, with plans to expand to other blockchains. Ripple believes there is strong demand for stablecoins in emerging markets and that the stablecoin will facilitate institutional and DeFi use cases. The launch is expected to bridge the gap between digital assets and traditional finance and increase adoption of the XRP Ledger.

Ripple Plans to Introduce USD-Pegged Stablecoin on Ethereum and XRP Ledger

San Francisco, CA - March 8, 2023 - Ripple, the prominent payments platform, has announced its intention to create a novel stablecoin pegged to the United States dollar on both Ethereum (ETH) and the XRP Ledger.

Stablecoin Details

In an official press release, Ripple Labs revealed that the upcoming stablecoin, yet to receive a name, will maintain a 1:1 peg to the USD. Its value will be fully backed by cash, short-term U.S. government treasuries, and other cash equivalents.

Ripple emphasizes the pressing demand for stablecoin-based payouts in developing markets. Initially, the stablecoin will be deployed on the XRP Ledger and Ethereum, the leading smart contract platform. However, Ripple intends to expand its presence to additional blockchains in the future.

Industry Impact

Monica Long, President of Ripple Labs, highlighted the potential of the stablecoin in the press release:

"By issuing our stablecoin on the XRP Ledger and Ethereum, we establish a pivotal gateway to facilitate innovative use cases for both institutional and decentralized finance (DeFi) applications spanning multiple ecosystems. The XRP Ledger's inherent capabilities, including decentralized exchanges and automated market making, seamlessly integrate with XRP as the bridge asset. Introducing a trusted stablecoin into XRPL will foster wider adoption and development, contributing to a thriving ecosystem."

Brad Garlinghouse, CEO of Ripple Labs, shared his insights on the social media platform X, emphasizing the stablecoin's role in bridging the gap between traditional finance and the digital asset industry:

"Launching a stablecoin is a natural progression for Ripple as we bridge the chasm between traditional finance and crypto. Our extensive experience, regulatory adherence, robust balance sheet, and near-global payout network equip us to deliver unparalleled crypto-enabled payments utilizing both XRP and our forthcoming stablecoin."

Market Reaction

At the time of writing, XRP is trading at $0.59, experiencing a 1.5% increase over the previous 24 hours.

Disclaimer

This news article serves solely as informational content and should not be construed as legal, tax, investment, financial, or other professional advice. Readers are encouraged to conduct thorough research and consult with qualified professionals before making any decisions based on the information presented.