Cover image via [U.Today]

As per a report by the Financial Times, the San Francisco-based company, Ripple, is preparing to introduce a stablecoin backed by the U.S. dollar.

This initiative is intended to create a connection between cryptocurrency and traditional finance, facilitating the use of blockchain technology in trading securities.

Ripple has highlighted that the stablecoin market has grown significantly to $150 billion, with Tether's USDT stablecoin alone accounting for $106 billion, according to data from CoinGecko.

The new stablecoin will be backed by dollar deposits, cash equivalents, and government bonds, with Ripple committing to conducting monthly attestations.

Ripple has positioned this new stablecoin as an "enterprise-grade" product with a focus on compliance.

Expanded Possibilities

Ripple's future stablecoin will be launched simultaneously on Ethereum and the XRP Ledger, with plans to extend issuance to other blockchains in due course.

The company anticipates that the new product will enhance liquidity and bring about more potential uses.

In his comments, Ripple CEO Brad Garlinghouse underscored the significance of the company's entry into the stablecoin market for the XRP Ledger community.