Ripple intends to launch a stablecoin pegged to the dollar on both the XRP Ledger and the Ethereum blockchain to compete against USDT and USDC, leading coins in the market. According to Ripple, there is a robust demand for security, assurance, and purpose behind the stablecoin.

CEO Brad Garlinghouse expressed that introducing a stablecoin aligns with the company's vision to connect traditional financial systems with cryptocurrency. Ripple aims to fill the gap left by the detachment of Tether's USDT and Circle's USDC in 2022 and 2023.

The forthcoming Ripple stablecoin plans to maintain a 1:1 peg to the dollar and will have financial backing secured by dollar deposits, short-term US government treasuries, and similar financial instruments, as stated by Ripple.

Emphasis on Transparency for Ripple Stablecoin

A focal point for the new Ripple stablecoin will be transparency, a critical issue faced by stablecoin creators according to David Schwartz, Ripple's Chief Technology Officer. To ensure this, there will be monthly public audits conducted by a top-tier accounting firm, as shared with CoinDesk.

Ripple President Monica Long highlighted that expanding the stablecoin to both Ethereum and the XRP Ledger will reveal unused potentials for DeFi and institutional purposes. Introducing a credible stablecoin on the XRP Ledger is anticipated to bolster the ecosystem by enhancing adoption and facilitating developments.

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