Ripple's Stablecoin to Launch in June
KEY FACT: Ripple's stablecoin documentation to be unveiled in June at $XRP Apex event in Amsterdam. The stablecoin aims to attract institutional investors to XRP Ledger by offering a stablecoin backed by US dollars, reducing volatility concerns. It may strengthen the XRP ecosystem and enable smoother cross-border payments, despite initial doubts.
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Crypto startup Ripple is planning to launch its much-anticipated USD-backed XRP stablecoin in June. This was hinted by the company’s Chief Technology Officer (CTO), David Schwartz, at XRP Las Vegas conference held over the weekend, while revealing the firm’s upcoming integrations including automated market makers (AMM), lending protocol, Ripple stablecoin, and AI.
Infos about @Ripple's stablecoin is expected to be announced in a month at the XRPL Apex event in Amsterdam. - source
Ripple would be the latest major player in the crypto space to jump into the $150 billion stablecoin market with the launch of a digital currency pegged to the U.S. dollar. The Ripple stablecoin is designed to be backed 1-to-1 by an equivalent sum of assets — U.S. dollar deposits, U.S. government bonds, and cash equivalents — that the company holds in reserve.
The crypto firm added that its reserves would be accounted for in publicly available monthly attestation reports. The mention of the development of a Ripple stablecoin by Schwartz has sparked interest among the XRP community. The launch of a stablecoin is expected to be a game changer for the entire XRP Ledger ecosystem with its highly lucrative market.
Per the stablecoin announcement made by the firm last month, the idea of a stablecoin is to create a more trustworthy alternative to assets like Tether’s (USDT) and Circle’s (USDC). Ripple berated that the XRP stablecoin will drive more use cases, liquidity, and opportunity for developers and users. Also, it is targeted at attracting traditional financial players to join the digital currency game.
Ripple’s stablecoin, for instance, is tailor-made for institutional investors who want to dive into the XRP Ledger world but are wary of the ups and downs of digital currencies. Thus, Ripple plans to tie the stablecoin to US dollar deposits, short-term US Treasury bonds, and similar safe assets.
According to Markus Infanger, who is the Senior Vice-President at Ripple, the stablecoin would not only act as a “portal,” bridging traditional capital and crypto markets but will also boost the stablecoin markets.
“Our assessment of the market shows very clearly stablecoins are playing an important role,” Infanger noted at the time. “They’re here to stay and they’ve been growing significantly, and we firmly believe the growth will continue to be strong.”
This development is coming at a time when the stablecoin market has been more competitive. Last month, Nick van Eck, the son of investment manager Jan van Eck, raised $12 million to launch a stablecoin. Payments giant PayPal and French bank Société Générale both launched their own stablecoins last year.
Stablecoins have become an attraction in the crypto space due to their convenience, the possibility of cross-border payments that can be completed any day of the week (rather than business days only), speed, and cost.
What is your favorite stablecoin and would you invest in another?
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Does ripple have a mining site