Ripple's Stablecoin Announcement

Ripple announces plans to introduce a dollar-backed stablecoin. According to a report published by the Financial Times, San Francisco-based company Ripple intends to launch a stablecoin backed by the dollar.

Venturing into this area, the company, primarily known for its association with the cryptocurrency XRP, aims to build a bridge between the cryptocurrency sector and the traditional financial system, enabling the use of blockchain technology for trading securities.

Ripple notes that the stablecoin market has reached significant proportions, with a value of $150 billion. Only the stablecoin USDT Tether is worth $106 billion, according to the latest data provided by CoinGecko.

The new stablecoin will be fully supported by dollar deposits, cash equivalents, and government bonds. Ripple announces that it will conduct audits every month to ensure the transparency and reliability of its stablecoin.

The company presents the new product as a "corporate-grade" stablecoin with a "compliance-first mindset," suggesting a particular focus on regulatory aspects and compliance with regulations.

An essential point of the plan is the simultaneous introduction of the new stablecoin on two platforms - Ethereum and the XRP Ledger. In the future, the company also plans to expand the issuance of the stablecoin to other blockchains, which has the potential to attract greater liquidity and generate new applications.

In his statement, Ripple CEO Brad Garlinghouse described his company's steps in the stablecoin sector as "monumental" for the community using the XRP Ledger, indicating high hopes for the success of the new product in the market.

*This is not a financial advice