Ripple Labs Issues Stablecoin to Rival USDT, USDC

Ripple Labs plans to launch a stablecoin aimed at revolutionizing transparency in blockchain payments, pegged to the US dollar.

Ripple Labs Inc., an American company specializing in blockchain payments, plans to launch a stablecoin asset to rival the currently popular alternatives in the market.

Ripple Labs Stablecoin and Push for Transparency

The company stated that its stablecoin will revolutionize the transparency of its reserves. The company noted that the values of the stablecoin will be fixed at a ratio of one to one with the United States dollar and that its reserves will depend on various assets.

The company states that some of these assets include deposits in US dollars, short-term treasuries issued by the US government, and other cash equivalents.

Ripple Labs has announced that it will conduct a comprehensive audit by consulting a third party and it will publish monthly attestations immediately after the stablecoin is introduced.

This action aims to enhance the stablecoin’s transparency. The Chief Executive Officer of Ripple, Brad Garlinghouse, stated that this is a natural move for Ripple to continue bridging the gap between traditional banking and cryptocurrency.

Ripple’s track record and resiliency speak for themselves as we develop new products and acquire companies across numerous market cycles.

Institutions entering this industry are finding success by collaborating with crypto-native players who are compliant with the regulations.

The XRP Ledger community will also benefit tremendously from this change, as it will increase the number of use cases, liquidity, and opportunities for users and developers.

Ripple Labs, a payments company, has faced several limitations during the protracted legal dispute with the United States Securities and Exchange Commission (SEC), which have hindered its capacity for innovation.

Nevertheless, the partial win in July last year ushered the company into a new era. Over several years, the company has utilized XRP, its related digital currency, as a payment token to fuel its On-Demand Liquidity (ODL) service.

The proposed stablecoin will further alleviate the strain that XRP is experiencing. At the time of its introduction, the Ripple Labs stablecoin will be hosted on the XRP ledger (XRPL), as stated in the release.

As part of its efforts to advance its decentralization goal, the company has announced that it will also host the stablecoin on Ethereum (ETH), potentially expanding its reach to include more protocols.

Within the context of the blockchain ecosystem, the stablecoin market is a crucial component of the blockchain ecosystem. Even though Tether (USDT) and USD Coin (USDC) each have more than 106 billion and 32.8 billion units in circulation, respectively.

Ripple is confident that its alternative stablecoin has the enterprise links necessary to acquire a significant portion of the market share that Tether now holds.

Ripple discussed the benefits users of its stablecoin will enjoy, such as compatibility with multiple chains, liquidity on the decentralized exchange, and enterprise-grade technologies.