Ripple announced its plans to release a stablecoin pegged to the U.S. dollar on both the XRP Ledger and the Ethereum blockchain, aiming to challenge established competitors like USDT and USDC. The stablecoin market is currently valued at around $150 billion, with projections indicating that it could reach over $2.8 trillion by 2028. This demonstrates a significant demand for trust, stability, and usability.

According to Ripple CEO Brad Garlinghouse, creating a stablecoin aligns with the company's goal of bridging the gap between traditional finance and crypto. The decision to launch a stablecoin was prompted by the temporary "depegging" incidents experienced by Tether's USDT and Circle's USDC in 2022 and 2023, respectively.

The upcoming Ripple stablecoin will be pegged 1:1 to the U.S. dollar and will be fully backed by dollar deposits, short-term U.S. government treasuries, and other cash equivalents. In addition to this, the stablecoin will prioritize transparency, a critical aspect often lacking among stablecoin issuers.

David Schwartz, Ripple's Chief Technology Officer, highlighted that there will be monthly public audits conducted by a reputable accounting firm to enhance the stablecoin's transparency. By issuing the stablecoin on Ethereum and the XRP Ledger, Ripple aims to unlock new opportunities in the realm of DeFi and institutional use cases.

Monica Long, Ripple's President, emphasized that implementing a trusted stablecoin on the XRP Ledger will stimulate more adoption and development, ultimately fostering a dynamic ecosystem.

The original content can be found at The Bit Times