$XRP Ripple is about to launch a stablecoin pegged to the US dollar, aiming to expand DeFi and institutional markets
Ripple has announced an ambitious plan to launch a stablecoin pegged to the U.S. dollar, a move expected to attract widespread attention in the cryptocurrency market. The stablecoin will initially be available on the XRP Ledger and Ethereum blockchains, both of which are currently up 2.66% respectively. In a statement, Ripple President Monica Long stressed that this move will open up new opportunities for institutional and decentralized finance (DeFi) use cases across multiple ecosystems.
Stablecoin Market Background
Currently, the main dollar-pegged stablecoins on the market are Tether's USDT and Circle Internet Financial's USDC. The stablecoin launched by Ripple will be backed by US dollar deposits, short-term US Treasury bonds and other cash equivalents, and will be audited by a third-party accounting firm. Ripple promises to publish proofs every month to enhance transparency and trust.
Potential impact of stablecoins
David Schwartz, chief technology officer of Ripple, said that although the team had plans to launch stablecoins, they chose to issue them this year, mainly based on in-depth understanding of market information and monitoring of economic factors. He also pointed out that although Ripple intends to occupy a place in the stablecoin market, the company is more concerned about providing diversified options, especially in DeFi applications, to reduce concentration risks.
Future Outlook
Although Ripple's stablecoin will initially be available only on the XRP Ledger and Ethereum networks, the company plans to expand it to more blockchains, DeFi protocols, and applications over time. This strategic layout shows Ripple's ambitions for the future cryptocurrency market.
As the leading digital currency of Ripple's ecosystem, Ripple's Inscription $AVAX $XRP will take on more functions such as Ripple DeFi and NFT.
