Ripple to Issue USD-backed Stablecoin, Bringing More Utility and Liquidity to XRP Ledger

Ripple, the leading provider of enterprise blockchain and crypto solutions, announced its plans to launch a stablecoin, pegged 1:1 to the US dollar (USD). Ripple's stablecoin will be 100% backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. These reserve assets will be audited by a third-party accounting firm, and Ripple will publish monthly attestations.

The stablecoin market is about $150B today, and is forecasted to exceed $2.8 trillion by 2028. There's clear demand for stablecoins that deliver trust, stability, and utility, the company noted in an announcement. To meet this growing demand, Ripple will issue a stablecoin, leveraging its decade-plus of experience building real-world financial solutions for institutions around the world.

"This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto," said Brad Garlinghouse, Ripple CEO. "Institutions entering this space are finding success by partnering with compliant, crypto-native players and Ripple's track record and resiliency speaks for itself, as we launch new products and acquire companies through multiple market cycles. This move is also monumental for the XRP Ledger community, driving more use cases, liquidity and opportunities for developers and users."

At launch, the stablecoin will be available on the XRP Ledger (XRPL) and Ethereum (ETH) blockchains, with plans to expand to additional blockchains and decentralized finance (DeFi) protocols and apps over time.

"Issuing our stablecoin on the XRP Ledger and Ethereum will serve as a pivotal entry point to unlock new opportunities for institutional and DeFi use cases across multiple ecosystems," added Monica Long, Ripple President. "The XRP Ledger's native capabilities, including a decentralized exchange and automated market maker, were built to utilize XRP as the bridge asset. Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem."

Ripple's stablecoin is expected to be available later this year, subject to applicable regulatory approval.