Ripple is set to launch a new stablecoin tied to the U.S. dollar, stepping into the $150 billion market led by Tether and Circle. The upcoming stablecoin will maintain a one-to-one value with a combination of U.S. dollar assets, such as deposits, government bonds, and cash equivalents, held by Ripple as reserves. The company plans to provide monthly reports on its reserves to ensure transparency, although the auditing firm has not been specified.

The stablecoin market is rapidly growing, currently valued at around $150 billion and expected to reach over $2.8 trillion by 2028. This surge reflects the increasing demand for trust, stability, and utility in the market. Ripple’s stablecoin, pegged 1:1 to the USD on the XRP Ledger and Ethereum, is set to launch later this year, starting in the U.S. before expanding to other regions with potential localized versions for European and Asian markets.

In a recent interview with CNBC, Ripple CEO Brad Garlinghouse highlighted the stability issues faced by Tether’s USDT and Circle’s USDC as the driving force behind Ripple’s decision to introduce its stablecoin. While Tether and USDC experienced value fluctuations due to backing and regulatory concerns, Ripple aims to differentiate itself by emphasizing its regulatory compliance and licensure in various jurisdictions, including New York, Ireland, and Singapore. Garlinghouse underscored Ripple’s regulated status as a key advantage in the stablecoin market.

Stay tuned for more updates and news on Global Crypto News for the latest developments in the cryptocurrency industry.

Post Views: 3