7 months ago
40 ARTICLE AD
Ripple aims to tap into the growth potential and niche opportunities within the stablecoin market.
Ripple plans to issue a stablecoin tied to the US dollar, which will be 100% backed by USD deposits, short-term US bonds, and other cash equivalents. Expected to debut later this year, Ripple’s stablecoin will be deployed on the XRP Ledger and the Ethereum blockchain, with plans to extend to other blockchains and DeFi platforms, Ripple said on its website.
To ensure transparency and address potential concerns about reserve quality, Ripple will publish monthly attestations of its stablecoin reserves. Additionally, these reserves will be audited by a reputable third-party accounting firm. Specific details regarding the chosen firm have not yet been disclosed.
Brad Garlinghouse, Ripple CEO, explained that the launch is to address the growing demand for stablecoin with a compliant and trusted solution and drive development and use cases within the XRPL ecosystem.
“Institutions entering this space are finding success by partnering with compliant, crypto-native players and Ripple’s track record and resiliency speaks for itself, as we launch new products and acquire companies through multiple market cycles. This move is also monumental for the XRP Ledger community, driving more use cases, liquidity and opportunities for developers and users,” said Garlinghouse.
Ripple claims its stablecoin offers a unique combination of features tailored for enterprise use, regulatory compliance, and a thriving developer ecosystem. The firm seeks to fill a gap in the market for institutions seeking stablecoin integration for large-scale payments.
A lucrative market
Stablecoins are an integral part of the crypto ecosystem. According to data from the Federal Reserves, over 80% of trading volume on major centralized crypto exchanges in 2022 involved stablecoins. This popularity can be attributed to their role as a frictionless on-chain intermediary. Unlike converting to traditional fiat currency, stablecoins allow traders to quickly move between positions without leaving the crypto ecosystem.
With a value of around $150 billion, Ripple CTO David Schwartz expects the stablecoin market to reach over $2 trillion by 2028. Currently, the market is dominated by Tether’s USDT and Circle’s USDC. However, Schwartz sees opportunities for niche players to carve out their space.
“We think it will be over $2 trillion by 2028, and there’s only two market leaders. We don’t think it’s a winner-take-all-all ecosystem, particularly on the DeFi side,” said Schwartz.
The stablecoin market is not just sizable, it’s highly profitable. Leading stablecoin issuer Tether recently reported a nearly $3 billion in quarterly profits last year, with $1 billion coming from US bonds. Last month, Tether hits a $100 billion market cap; this level of growth puts Tether in the same league as established giants like British oil and gas giant BP and Shopify in terms of market capitalization.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
Crypto Briefing may augment articles with AI-generated content created by Crypto Briefing’s own proprietary AI platform. We use AI as a tool to deliver fast, valuable and actionable information without losing the insight - and oversight - of experienced crypto natives. All AI augmented content is carefully reviewed, including for factural accuracy, by our editors and writers, and always draws from multiple primary and secondary sources when available to create our stories and articles.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
