Ripple has unveiled its plans to introduce a stablecoin that will be pegged to the value of the U.S. dollar, putting it in direct competition with leading stablecoin providers Tether and Circle. The stablecoin market, currently valued at $150 billion, is where Ripple aims to make its mark. The stablecoin will maintain a one-to-one value ratio with the U.S. dollar and will be backed by a combination of U.S. dollar deposits, government bonds, and cash equivalents. Ripple CEO Brad Garlinghouse believes that the introduction of a stablecoin will complement and help grow the XRP ecosystem. To ensure transparency and trust, Ripple will provide monthly attestation reports detailing the reserves backing the stablecoin. While the auditing firm responsible for these reports has not been disclosed, Ripple plans to launch its stablecoin in the U.S. and may expand to other markets in the future. Garlinghouse emphasizes Ripple’s commitment to regulatory compliance, citing its adherence to standards in multiple countries. The stablecoin venture comes as Ripple continues its legal battle with the U.S. Securities and Exchange Commission (SEC) over allegations of illegal XRP sales. Ripple’s entry into the stablecoin market represents a strategic move to solidify its position in the digital currency field and enhance the utility of the XRP ecosystem.
