The management of Ripple Labs recently announced its strategic plan to issue its own stablecoin pegged to the value of the U.S. dollar. According to Ripple's Chief Technology Officer David Schwartz, the digital asset is scheduled to be released by the end of 2024.
The stablecoin will reportedly be backed by "U.S. dollar deposits, short-term U.S. government treasuries and similar liquid assets." Its deployment will span the XRPL and #Ethereum networks, and an external organization will be responsible for verifying the reserves.
A high-quality USD stablecoin on the XRPL – with its decentralized exchange and features like issued currencies, auto-bridging (that uses XRP as the native currency to facilitate trades between other assets), and the AMM — will be a gamechanger for users and devs. https://t.co/uGC72bosfM
— David "JoelKatz" Schwartz (@JoelKatz) April 4, 2024
Monica Long, president of Ripple, said the launch of a steblecoin on XRP Ledger and Ethereum signifies a watershed moment that opens up new perspectives for institutional and #DeFi participants across ecosystems.
David Schwartz sees steblecoin as a formidable rival to established assets such as #USDT and #USDC, emphasizing its focus on corporates and payment service providers. Ripple is looking to establish a strong foothold in the digital asset space.
In addition, Ripple's management expects the emergence of the stablecoin to contribute to the development of the decentralized XRP Ledger ecosystem. The company prioritizes transparency and transaction security, and Schwartz emphasized the importance of regular public audits by a reputable accounting firm.
Brad Garlinghouse, CEO of #Ripple Labs, previously endorsed the concept of launching an XRP-ETF, which is in line with the company's strategic initiatives in the evolving landscape of #digital assets.
