Ripple has announced the launch of its own stablecoin, scheduled for late 2024. This new stablecoin will be primarily backed by deposits in US dollars, with additional support from short-term US Treasury bonds and other cash equivalents.
Ripple's New Stablecoin Arrives This Year
Initially, Ripple plans to deploy the stablecoin on both the XRP Ledger and the Ethereum blockchain (ETH) using Ethereum’s ERC-20 token standard.
David Schwartz, Ripple’s Vice President, emphasized that transparency—historically a contentious issue for stablecoin issuers—will be a key focus during the rollout of their new token.
"Our competitive edge lies in dollar-denominated assets and rock-solid Treasury bonds. We’re not chasing marginal gains. Our goal is to dominate the market and sustain long-term presence."
Amid Ripple’s ongoing legal challenges with the SEC, the company hinted that part of its motivation stems from leveraging favorable market conditions. Ripple’s stablecoin will compete directly with major players like Tether (USDT) and Circle (USDC).
Impact on Ripple and XRP
Schwartz suggests that Ripple’s stablecoin could revitalize decentralized finance (DeFi) within the XRP Ledger. Despite having a decentralized exchange (DEX), the ledger’s usage remains relatively limited compared to other chains.
Another critical question is how the stablecoin might influence Ripple’s other products, particularly its native XRP token.
Potential benefits for XRP include:
- Increased utility and liquidity
- Stronger market confidence
- Potential price recovery after bearish trends
Currently, XRP trades between $0.55–$0.59, marking a 3% rise over the past 24 hours. Weekly charts show consolidation, with a modest 3% decline over the last seven days.
👉 Track live XRP price movements
The introduction of Ripple’s stablecoin could reinvigorate XRP and the broader crypto market while boosting investor trust.
FAQ
1. When will Ripple’s stablecoin launch?
Ripple plans to release its stablecoin in late 2024.
2. What backs Ripple’s stablecoin?
It will be backed by US dollar deposits, Treasury bonds, and cash equivalents.
3. Will Ripple’s stablecoin affect XRP’s price?
Yes, it could enhance XRP’s utility, liquidity, and market confidence, potentially driving price growth.
4. Where can I trade XRP?
5. How does Ripple’s stablecoin differ from USDT or USDC?
Ripple emphasizes transparency and regulatory compliance, differentiating it from competitors.
6. What blockchain will support Ripple’s stablecoin?
It will launch on both XRP Ledger and Ethereum (ERC-20).
Disclaimer: The information provided here is for general purposes only. Readers should conduct their own research before making any financial decisions.