Ripple is Planning to Launch Dollar-Based Stablecoin to Compete Against USDT and USDC

Ripple is Planning to Launch Dollar-Based Stablecoin to Compete Against USDT and USDC

Ripple is expecting stablecoin to surpass $2 trillion before 2028. the firm is working on introducing a new stablecoin. The firm responsible for issuing XRP announced plans to launch USD-backed stablecoin that will go up against USDT and USDC to capture a portion of the market share during the upcoming 5 years.

The stablecoin is set to launch on XRP Ledger and Ethereum network. The executive noted that the project is still in the planning phase and told reporters to call it Ripple stablecoin.

Ripple Labs has been working with the idea of introducing stablecoin for more than a year and Schwartz claims that stablecoin ecosystem is not diverse and robust enough.

He projected that the stablecoin market cap may be around $150 billion. He further stated that there is still room for new entries. He noticed that the firm has projected stablecoin market to morph into a $2 trillion sector by 2028.

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He further claimed that it is not a matter of winner-take-all type of sector with an emphasis on DeFi. Ripple stablecoin will be pegged in 1:1 ratio with USD.

Ripple CTO Shares Details About Ripple Stablecoin Reserves

Schwartz noticed that the Ripple stablecoin will be backed by USD deposits, short-term treasury notes, and other cash equivalents. The executive stated that Ripple is emulating Circle’s focus on regulatory compliance and aim to compete against USDC.

He noticed that the project will take a compliance-first approach. He also stated that the investors will gain transparency about the reserves and holdings that will support the new stablecoin.

He noticed that the project will try to capture a portion of the stablecoin markets. He noticed that there are no plans to finesse extra decimal points by taking risks with investor’s money. Schwartz responded to questions regarding Ripple’s plan to back the new stablecoin with USD-based deposits and Treasury notes etc.

He confirmed that the holdings will be audited by third-party accounting firm and Ripple will share monthly attestations with investors.

He compared the project to Tether launch when critics raised alarm about the possibility of theft and credibility of reserve audit reports. He recalled that when Tether was introduced there was a massive concern among investors that the project may take off with their money because they had an incentive to act in that way.

However, the project built a report with the investors consolidating their long-term focus and plan to conduct business in the sector.

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Risks and Challenges Associated with Ripple’s Upcoming Stablecoin

The CTO noted that a stablecoin project can generate hundreds of millions, billions, or tens of billions of dollars that are a major cause of concern for issuers.

He noticed that the firm will leverage its existing goodwill, credibility, track record, and balance sheet to cement its position in the stablecoin market. He stated that the firm is aiming for the number 3 spot by the end of 2 years in the presence of two major players.

However, he retained that if the market cap grows by 10 times that would be credited as a successful launch as well for the new stablecoin.

Speaking with the journalists, he reported that the firm decided to introduce a native stablecoin while XRP is offering services as a real-time settlement network, swaps, and remittance carrier. He noticed that Ripplenet is a non-bank payment firm that uses XRP for transactions.

Features of Ripple Stablecoin

However, the product is still inaccessible in some markets via XRP or supplement liquidity options. He further stated that the stablecoin will add more utility to the recently launched automated market maker protocol.

He stated that stablecoin will offer liquidity, harbor volatility, and generate arbitrage opportunities between multiple assets. The AMM protocol called XLS-30 was built in association with the XRPL community and ability to make cross-chain DeFi transactions across 50 blockchain networks.

Furthermore, the Artificial technology is also shaping the world of cryptocurrencies and blockchain technology. It is being implemented everywhere in the field whether it is crypto trading bots like Quantum Asset AI or coins being developed with the help of AI. The use of AI is growing day by day.

Author: Isacco Genovesi

Isacco writes news articles, reviews and guides about cryptocurrencies including technical analysis, blockchain events, coin prices marketcap and detailed reviews on crypto exchanges and trading platforms.

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