Ripple President Monica Long has finally spoken out about the company’s plans to launch a stablecoin tied to the U.S. dollar on the XRP Ledger. This move marks Ripple’s entry into the rapidly expanding stablecoin market, which is currently valued at around $150 billion and is expected to experience substantial growth in the coming years.
The stablecoin will be fully backed by U.S. dollar deposits, short-term U.S. government treasuries, and similar cash equivalents. Its purpose is to meet the increasing demand for secure and reliable digital assets. Leveraging its expertise in developing financial solutions for institutions worldwide, Ripple intends to initially make the stablecoin available on the XRP Ledger and Ethereum blockchains, with potential expansion onto other platforms in the future.
Monica Long emphasized the importance of stablecoins in providing stability and accessibility to cryptocurrency markets, especially in light of recent banking crises. She highlighted the need for reliable on/off ramps to the U.S. dollar for traditional institutions, particularly in the United States.
Stablecoins serve a crucial role as bridges between traditional financial institutions and the world of cryptocurrencies. Long expressed her excitement about Ripple fulfilling this market need with its stablecoin. She stressed the company’s commitment to delivering trust and utility while accounting for regulatory considerations.
The impending launch of Ripple’s stablecoin has generated significant anticipation within the industry, with experts eagerly awaiting its potential impact on the broader crypto landscape. The approval of necessary regulations will play a crucial role in determining the stablecoin’s release timeline.