Ripple
Ripple ventures into stablecoin market with USD-pegged token
Ripple is set to debut its own stablecoin, anchoring itself in the lucrative $150 billion market dominated by Tether and Circle.
The forthcoming stablecoin will uphold a one-to-one parity with the U.S. dollar, backed by a blend of U.S. dollar assets comprising deposits, government bonds, and cash equivalents held in reserves by Ripple.
Ripple plans to issue monthly attestations detailing its reserves in a bid for transparency, although the auditing firm responsible has yet to be disclosed.
Initially launching in the United States, Ripple foresees its stablecoin expanding to encompass other geographical regions, with potential customized versions tailored for European and Asian markets.
During a recent interview with CNBC, Ripple CEO Brad Garlinghouse cited the stability concerns surrounding Tether’s USDT and Circle’s USDC as the impetus behind Ripple’s foray into the stablecoin sphere.
Of note, the value of USDT plummeted below the $1 threshold following the collapse of terraUSD in 2022, a scenario echoed by USDC in 2023 following the fallout from Silicon Valley Bank’s failure.
In contrast to the scrutiny Tether has faced regarding the authenticity of its reserves, Ripple aims to differentiate itself by spotlighting its adherence to regulatory standards and licensure across various jurisdictions, including New York, Ireland, and Singapore.