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Ripple Sets Its Sights on the Stablecoin Market with Plans to Launch a USD-Backed Stablecoin

Ripple to Launch a USD-backed Stablecoin Backed by Treasury Bonds

Ripple has announced the introduction of its own stablecoin backed by the US dollar, putting it in direct competition with giants like Tether and Circle.

We believe that what will differentiate us is the fact that the assets will be in dollars, in Treasury bonds – solid as a rock. We aim to conquer the market and be present in the long term.

David Schwartz, CTO of Ripple

The Rising Market of Stablecoins

According to Ripple, the stablecoin market, currently valued at over $150 billion, could reach $2.8 trillion by 2028. Ripple highlights the growing demand for stablecoins that offer trust, stability, and utility.

The company plans to launch its stablecoin “later this year”, ensuring 100% coverage with deposits in US dollars, short-term Treasury bonds, and other cash equivalents. This stablecoin will be deployed on the XRP Ledger, focusing on institutions, as well as on the Ethereum blockchain, and will be based on Ethereum’s ERC-20 token standard.

Ripple and its Long-Term Vision

David Schwartz, CTO of Ripple, emphasizes the solidity of the underlying assets in dollars and Treasury bonds as a differentiating factor. Ripple’s goal is not to maximize short-term profits, but to establish a lasting presence in the stablecoin market.

Ripple’s decision to enter this sector is partially driven by the opportunity of a growing market and the desire to fuel the decentralized finance ecosystem of Ledger.

Transparency, often a point of criticism for stablecoin issuers, will be at the core of Ripple’s strategy. The company plans for monthly public audits by a leading accounting firm, aiming for complete transparency.

According to Schwartz, the growth potential of the stablecoin market encourages Ripple and other providers to act with honesty. He emphasizes Ripple’s financial solidity and the focus of its stablecoin on enterprise clients and banking institutions, requiring a compliance-oriented approach.

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