Blockchain and cryptocurrency solution provider, Ripple, has revealed plans to launch a stablecoin tied to the US dollar, aiming to cater to the increasing demand for reliable and practical stablecoins. With a stablecoin market capitalization currently at approximately $150 billion and predicted to rise to $2.8 trillion by 2028, Ripple is leveraging its expertise in financial solutions to meet market requirements.

Ripple's CEO, Brad Garlinghouse, emphasized the strategic move to bridge traditional finance and crypto by partnering with compliant crypto-focused entities. He foresees benefits for the XRP Ledger community, including enhanced adoption, liquidity, and opportunities for developers and users. Ripple's stablecoin will be available on XRP Ledger and Ethereum initially, with plans to explore integration with other blockchains and decentralized finance platforms in the future.

Monica Long from Ripple indicated that launching the stablecoin on XRP Ledger and Ethereum will create avenues for institutional and DeFi use cases in various ecosystems. The announcement resulted in a 3% surge in XRP price, peaking at $0.61 before settling around $0.59. Despite a recent 2.5% increase, XRP's price has faced fluctuations, with a 4% drop in the last week and an 8% decline in the past month.