- Ripple is planning monthly attestations reports to ensure transparency. The auditing firm has not yet been identified.
- Stability will be ensured by backing the stablecoin with U.S. dollars, bonds issued by government and equivalent cash.
Ripple has revealed its plans to launch a US dollar-pegged stablecoin. Ripple is now in direct competition against the two leading stablecoins providers Tether and Circle who are responsible for the UDST token and USDC.
Ripple’s goal is to gain a foothold on the stablecoin market. The current valuation for this market stands at $150 billion. Ripple’s Stablecoin guarantees a 1:1 value with the U.S. dollarsIt is backed up by a mixture of U.S. Dollar deposits, Government Bonds, and Cash Equivalents.
“Our view is, having pools of liquidity that are native to the XRP ledger, they complement and help grow the XRP ecosystem,” Garlinghouse said CNBC. “In fact, the number one request we get from the XRP community is to launch a USD-backed stablecoin on the XRP Ledger.”
Continue reading: Ripple’s XRP Outlook: 200% Growth Forecasted Amid Bitcoin Halving Event
Ensure Stability and trust
Ripple is releasing monthly reports to maintain trust and encourage the use of its stablecoin. The reports will detail the reserve backing the stablecoin. However, the company hasn’t yet identified the auditors responsible for the assessments. Ripple’s stablecoin launch will be in the U.S. future expansions Stablecoins can be tailored to specific markets, such as Europe or Asia.
It is a response to the volatility experienced by previous stablecoins such as Tether’s UDST, and Circle’s USDC. The tokens’ $1 values have been shifted by market fluctuations and failures. financial Entities that raise concerns over their reserve strength and stability.
Faced with Regulation and Growing Market Presence
Brad Garlinghouse is Ripple’s CEO and he highlights the regulatory uncertainty surrounding the leading stablecoins currently available in the U.S. He claims that Ripple is a reliable and transparent option on the stablecoins market because it adheres to regulatory standards across multiple countries including New York and Ireland.
Garlinghouse stresses Ripple’s dedication to its cryptocurrency XRP. He states that the stablecoin will complement, not replace, the XRP Ecosystem.
Related: Ripple’s XRPL Breakthrough: Surpasses 87 Million Ledgers Milestone
Garlinghouse discusses Ripple’s legal battle with the U.S. Securities and Exchange Commission. This dispute began in 2020. In its lawsuit, the SEC alleges that Ripple sold XRP illegally. Ripple won a recent partial court decision, which stated that XRP sold to institutional buyers was unlawful. However, XRP did not qualify as a financial instrument.
An Approach That Thinks Forward
Ripple is looking to strengthen its digital currency market position through its entry into the stablecoin space. Ripple’s stablecoin is pegged to the U.S. Dollar and aims at challenging existing leaders on the stablecoin markets by providing a transparent, reliable digital currency.
Ripple is entering the stablecoins market with a strategy that focuses on regulatory compliance and stability. This will allow the company to increase its product line and improve the usefulness of the XRP system.
Current price for Ripple USD (XRP) About $0.601035It is now up $0.022993 3.98% As of the most recent update.
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