The world of cryptocurrency will soon see a rising player in the market, as Ripple revealed that it will launch its first stablecoin under the United States dollar.
This means that it will be similar to the already popular stablecoins in the market like Tether’s USDt and Circle’s USD Coin (USDC), and more which already make up $150 billion in the crypto industry.
However, Ripple is not stopping there, as the company is also looking to bring other stablecoins tied to other regional currencies.
Ripple’s Stablecoin is Coming, Tied to the US Dollar
Ripple, the company behind the XRP Ledger and proprietor of the $XRP, is now moving towards launching their US dollar-based stablecoin. The company will launch said coins in the United States, which is a first for them, but it is certainly not the last, said CNBC, not ruling out offering more stablecoins in the future that are tied to regional products in Europe and Asia.
According to the company, stablecoins will always be backed by an equivalent sum of assets, 1:1 to the US dollar, due to deposits, US government bonds, and cash equivalents.
Ripple CEO Brad Garlinghouse claimed that the decision behind launching a stablecoin stems from the “depegging” of rivals.
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Ripple’s Stablecoin and Future Ventures
The stablecoin from Ripple would go against the likes of Tether USDt and Circle’s USD Coin, with both companies known for their de-pegging in 2022 and 2023, respectively.
Garlinghouse regarded that there is “some uncertainty” about the market leader among US regulators, something that Ripple will stand out against as it is a regulated institution with licenses in New York, Ireland, Singapore, and more.
Ripple vs. Tether, Circle’s USDC
Stablecoins are known for their stability in the market, with these coins tied to a specific currency, with the most famous in the world pegged to the US dollar. That being said, Ripple is set to enter its US dollar stablecoin soon, previously known for facing a lawsuit from the US Securities and Exchange Commission for the sale of $XRP, leading to its delisting on Coinbase.
Since then, the company has branched out to the neighboring continent and is also seeking a VASP license in Ireland.
It will be going out against the likes of Tether, a company best known for raking third in the market with its USDt stablecoin tied to the US dollar. The company previously branched out to the other side of the Atlantic and launched GBPT, the first crypto tied to the British Sterling pound.
While there are no guarantees that stablecoins will remain unbothered by the crypto market’s dwindling numbers, especially with the Terra meltdown and Bitcoin’s downfall affecting it, they are still highly regarded for steady performance.
Ripple will soon bring its USD-based stablecoin to the world, marking a new market for the XRP Ledger maker.
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