Ripple plans to introduce a stablecoin pegged to the US dollar this year, as projections estimate the market will surpass $2.8t by 2028.<\/p>\n
The stablecoin will be fully collateralized by US dollar deposits, along with short-term US government treasuries and other cash equivalents, Ripple said<\/span><\/a> on Thursday.<\/p>\n \u201cThese reserve assets will be audited by a third-party accounting firm, and Ripple will publish monthly attestations,\u201d Ripple said. It did not specify which firm would conduct the audits.<\/p>\n The move positions Ripple as a competitor to established leaders in the stablecoin market, like Tether and Circle. Notably, PayPal entered the fray<\/span><\/a> last year with the launch of its own USD-backed stablecoin, PayPal USD (PYUSD), on Ethereum.<\/p>\n 1\/ The stablecoin market is booming \u2013 around $150B today, and projected to soar past $2.8T by 2028. There\u2019s a clear demand for trust, stability, and utility. <\/p>\n That\u2019s why later this year we\u2019re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.\u2026<\/p>\n \u2014 Ripple (@Ripple) April 4, 2024<\/a><\/p>\n Tether co-founder William Quigley told Cryptonews that PayPal would be unlikely to achieve dominance<\/span><\/a> in this market, particularly outside the US. However, PayPal\u2019s stablecoin currently holds the 12th position globally, boasting a market capitalization of $190m.<\/p>\n 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.<\/p>\n 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.<\/p>\n <\/span> The move also drives \u201cmore use cases, liquidity and opportunities for developers and users,\u201d he said.<\/p>\n Ripple\u2019s 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.<\/p>\n The decision to launch on both XRPL and Ethereum facilitates cross-chain interoperability, a crucial feature for seamless interaction between disparate blockchain networks.<\/p>\n <\/span> The initial launch is reportedly targeted at the US market. But the network hasn\u2019t ruled out the possibility of introducing regional variations for other markets such as Europe and Asia.<\/p>\n The post Ripple\u2019s New Stablecoin Looks to Boost XRP Adoption<\/a> appeared first on Cryptonews<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Ripple plans to introduce a stablecoin pegged to the US dollar this year, as…<\/p>\n","protected":false},"author":0,"featured_media":29083,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-29082","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts\/29082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/comments?post=29082"}],"version-history":[{"count":0,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts\/29082\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/media\/29083"}],"wp:attachment":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/media?parent=29082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/categories?post=29082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/tags?post=29082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}XRP Ledger Gets Boost with Stablecoin<\/h2>\n
\nRipple CEO Brad Garlinghouse said that institutions entering the stablecoin market are finding success by partnering with compliant, crypto-native players. \u201cAnd Ripple\u2019s track record and resiliency speaks for itself, as we launch new products and acquire companies through multiple market cycles,\u201d he added.<\/p>\nEmerging Markets Drive Demand for Ripple\u2019s Stablecoin Payouts<\/h2>\n
\nRipple 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\u2019s customers in emerging markets have expressed interest in facilitating stablecoin payouts.<\/p>\n