Wednesday, 17 April 2024

Crypto News

Ripple to issue USD-pegged stablecoin challenging Tether and USDC market dominance

Ripple to acquire Standard Custody & Trust Co. to expand US presence

  • Ripple enters the stablecoin market with a USD-pegged token.
  • Backed by USD deposits, treasuries, and audits, Ripple’s stablecoin targets institutional adoption.
  • The new stablecoin will initially be issued on Ethereum and XRP Ledger.

Ripple, the blockchain enterprise behind XRP Ledger, has announced its entry into the stablecoin market with plans to introduce a USD-pegged stablecoin.

Backed by a robust reserve of USD deposits, short-term U.S. government treasuries, and other cash equivalents, Ripple aims to rival existing stablecoins like Tether (USDT) and Circle’s USD Coin (USDC).

Ripple’s move into the stablecoin market

Ripple’s Chief Technology Officer, David Schwartz, revealed the company’s strategic decision to enter the stablecoin arena, highlighting the growing interest in stable assets amidst regulatory uncertainties and market shifts.

With the stablecoin launch slated for later this year, Ripple aims to leverage its compliance-first approach and partnerships with global banks to provide a trusted alternative for institutional clients and payment companies.

The distinguishing features of Ripple’s stablecoin

Ripple’s stablecoin will offer transparency through regular audits conducted by third-party accounting firms, ensuring accountability and trust for users.

The stablecoin will initially be available on the XRP Ledger and Ethereum networks, with plans to expand to additional blockchains and DeFi protocols over time.

By deploying the stablecoin on the XRP Ledger and Ethereum, Ripple aims to unlock new opportunities in institutional and decentralized finance (DeFi) use cases across multiple ecosystems.

By providing a trusted and compliant stablecoin option, Ripple seeks to drive adoption among enterprise clients and contribute to a vibrant ecosystem of stable assets in the cryptocurrency market.

With the stablecoin market projected to reach $2.8 trillion by 2028, Ripple sees significant potential for growth and adoption.

While Tether (USDT) currently dominates the stablecoin market, Ripple sees an opportunity to provide an alternative amidst regulatory concerns and market dynamics.

Ripple acknowledges the dominance of USDT but believes there is room for multiple options, particularly in DeFi applications where concentrated risk poses challenges.

By offering a stablecoin backed by USD reserves and supported by…

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