Ripple to Introduce New Stablecoin on Ethereum and XRP Ledger

The well-known payments company Ripple has announced plans to create a new stablecoin on Ethereum (ETH) and the XRP Ledger that is based on the US dollar.

According to a recent press release from Ripple Labs, the stablecoin will be entirely backed by cash reserves, short-term US government treasuries, and similar cash assets. It is intended to maintain a 1:1 peg with the US dollar.

Stablecoin transactions are highly sought after by users in emerging regions, as noted by Ripple. if details were not disclosed, Ripple indicated intentions for potential extension to other blockchain networks, even if the stablecoin’s first rollout would take place on the XRP Ledger and Ethereum.

Monica Long, president of Ripple Labs, highlighted the significance of issuing the stablecoin on both the XRP Ledger and Ethereum platforms, citing it as a crucial step in unlocking new prospects for institutional and decentralized finance applications across diverse ecosystems.

Ripple’s Vision for the Future

Long claims that by utilizing the XRP Ledger’s built-in features, such as its automated market maker and decentralized exchange, more people would be able to accept it and it will grow into a vibrant ecosystem.

On the social networking site X, Brad Garlinghouse, the CEO of Ripple Labs, repeated these ideas and said that the launch of a stablecoin will aid in bridging the divide between traditional banking and the digital assets sector.

Garlinghouse highlighted that the integration of crypto-enabled payments, using both XRP and the upcoming stablecoin, will be supported by Ripple’s vast experience, regulatory compliance, strong financial standing, and enormous network coverage.