• Ripple plans to launch its own stablecoin responding to strong demand for trustworthy and stable digital assets.
• The stablecoin, set to launch later this year, will be fully backed by US dollar deposits, short-term U.S. government Treasuries, and similar assets.
• The stablecoin will initially be introduced on XRP Ledger and Ethereum blockchain, adhering to ERC-20 standards.

Ripple, known for its enterprise blockchain solutions and XRP ledger, announced recently that it will launch its own stablecoin tied to the U.S. dollar. The company expressed that there’s a strong demand for stablecoins that are trustworthy, stable, and useful.

Ripple Stablecoin

The company intends to launch the stablecoin later this year. It is noted to be fully supported by US dollar deposits, short-term U.S. government Treasuries, and similar assets. Initially, the stablecoin will be introduced on XRP Ledger and the Ethereum blockchain, adhering to the ERC-20 token standard.

Phakathi ku umbiko, Ripple stated that the market for stablecoins is currently over $150 billion and is forecasted to go over $2.8 trillion by 2028. The firm then highlighted that there is a “clear demand for stablecoins that deliver trust, stability, and utility.”

The firm intends for its stablecoin to complement its existing On-Demand Liquidity product, which facilitates fast settlement of transactions between banks and financial institutions using XRP as a bridge currency. 

Despite facing challenges in promoting XRP’s utility to banks and payment firms, such as Santander and MoneyGram, Ripple CEO Garlinghouse affirmed the company’s ongoing commitment to XRP as a payment token. He emphasized that stablecoins would be complementary in the XRP ecosystem rather than replacing its original purpose.

“Our view is, having pools of liquidity that are native to the XRP ledger, they complement and help grow the XRP ecosystem… In fact, the number one request we get from the XRP community is to launch a USD-backed stablecoin on the XRP Ledger,” Garlinghouse told I-CNBC.

In addition, according to the company, its decision to launch a stablecoin stemmed from concerns over the instability of rival firms Tether’s USDT token and Circle’s USDC. Tether’s peg to the dollar faltered in 2022 during the collapse of terraUSD, an algorithmic stablecoin, while USDC faced similar issues in 2023 due to exposure to Silicon Valley Bank.

Moreover, Ripple CEO Garlinghouse highlighted regulatory uncertainties surrounding the current market leader but emphasized Ripple’s regulatory compliance with licenses in multiple countries, including New York, Ireland, and Singapore.

Yini amaStablecoins?

These are digital currencies designed to maintain a constant value, often by being pegged to a fiat currency such as the US dollar. In contrast to volatile cryptocurrencies, stablecoins strive for stability to offer users a reliable asset. They serve various purposes, including trading, remittance, and online financial transactions.

Funda: Yini ama-Stablecoins? Isingeniso, Incazelo, kanye Nezimo Zokusebenzisa

Other USD-Pegged Stablecoins

USDT

USDT (Tether) is a stablecoin introduced in 2014. It is issued by Tether, a subsidiary of iFinex, the parent company of BitFinex exchange. Initially built on the Bitcoin blockchain, USDT now operates across various blockchains including Omni, Ethereum, and others. 

Funda:

USDC

USD Coin (USDC) is a stablecoin supported by U.S. dollars or dollar-denominated assets, such as U.S. Treasury securities. Its main characteristics comprise complete fiat support to guarantee stability, separate reserve accounts managed by regulated U.S. financial entities to ensure asset security, and a mechanism for token issuance and redemption known as minting and burning.

Compatible with various blockchains such as Ethereum and Stellar, USDC is managed by the Centre Consortium, and co-founded by Coinbase and Circle. Its use cases include hedging volatility and pricing digital assets in fiat on exchanges.

Funda:

Paypal USD

PayPal USD (PYUSD) is a stablecoin backed by U.S. dollar deposits, treasuries, and similar assets. Investors can buy, sell, hold, and send PYUSD on PayPal, with no fees attached except for converting to other cryptocurrencies. It’s issued on various blockchains.

Funda:

Other Ripple News

In October 2023, the US Securities and Exchange Commission (SEC) wawasula wonke amacala against Ripple’s CEO Garlinghouse and Executive Chairman Chris Larsen, leading to a 6% increase in the price of XRP, Ripple’s associated cryptocurrency. This development concludes a three-year legal battle initiated by the SEC, which contended that Ripple failed to register XRP as a security. 

The SEC’s lawsuit against Ripple and its executives was filed in December 2020, alleging that XRP should have been registered as a security since 2013, despite a court ruling in favor of Ripple in July 2023, the SEC attempted to challenge the decision unsuccessfully. 

Lo mbhalo ushicilelwe ku-BitPinas: XRP Ledger Creator Ripple to Launch Own Stablecoin

Disclaimer:

• Ngaphambi kokutshala imali kunoma iyiphi i-cryptocurrency, kubalulekile ukuthi uzenzele eyakho inkuthalo futhi ufune izeluleko ezifanele zochwepheshe mayelana nesikhundla sakho esithile ngaphambi kokwenza noma yiziphi izinqumo zezezimali.
• I-BitPinas inikeza okuqukethwe kwe izinjongo zokwaziswa kuphela futhi azihlanganisi iseluleko sokutshala izimali. Izenzo zakho ziwumthwalo wakho kuphela. Le webhusayithi ayinasibopho sanoma yikuphi ukulahlekelwa ongase ukuthole, futhi ngeke ifune ukuchazwa ngezinzuzo zakho.

• I-SEO Powered Content & PR Distribution. Khuliswa Namuhla.
• I-PlatoData.Network Vertical Generative Ai. Zinike Amandla. Finyelela Lapha.
• I-PlatoAiStream. I-Web3 Intelligence. Ulwazi Lukhulisiwe. Finyelela Lapha.
• I-PlatoESG. Ikhabhoni, I-CleanTech, Amandla, Environment, Ilanga, Ukuphathwa Kwemfucuza. Finyelela Lapha.
• I-PlatoHealth. I-Biotech kanye ne-Clinical Trials Intelligence. Finyelela Lapha.
• Source: https://bitpinas.com/business/xrp-ripple-stablecoin/