Ripple’s New Stablecoin Looks to Boost XRP Adoption
Ripple plans to introduce a stablecoin pegged to the US dollar this year, as projections estimate the market will surpass $2.8t by 2028.
The stablecoin will be fully collateralized by US dollar deposits, along with short-term US government treasuries and other cash equivalents, Ripple said on Thursday.
“These reserve assets will be audited by a third-party accounting firm, and Ripple will publish monthly attestations,” Ripple said. It did not specify which firm would conduct the audits.
The move positions Ripple as a competitor to established leaders in the stablecoin market, like Tether and Circle. Notably, PayPal entered the fray last year with the launch of its own USD-backed stablecoin, PayPal USD (PYUSD), on Ethereum.
1/ The stablecoin market is booming – around $150B today, and projected to soar past $2.8T by 2028. There's a clear demand for trust, stability, and utility.
That's why later this year we’re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.…
— Ripple (@Ripple) April 4, 2024
Tether co-founder William Quigley told Cryptonews that PayPal would be unlikely to achieve dominance in this market, particularly outside the US. However, PayPal’s stablecoin currently holds the 12th position globally, boasting a market capitalization of $190m.
Stablecoins represent a distinct class of cryptocurrency specifically engineered to exhibit minimal price fluctuations. This stability is achieved by pegging their value to external assets, such as traditional fiat currencies or financial instruments.
As a result, they offer a significantly less volatile alternative compared to established cryptocurrencies like Bitcoin and Ethereum. This makes them particularly attractive to risk-averse investors looking
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