Amid its ongoing legal dispute with the Securities and Exchange Commission, Ripple is focusing on expanding its cryptocurrency portfolio by planning to launch a stablecoin. This stablecoin is set to be released in 2024 and will be backed by U.S. dollar deposits, short-term U.S. government Treasuries, and other cash equivalents. The company aims to deploy the stablecoin on both the XRP Ledger and Ethereum blockchain, initially targeting enterprise customers and banking institutions.

Ripple's CTO, David Schwartz, emphasized the stablecoin's focus on transparency and stability rather than aiming for maximum profitability. This strategic move is seen as an opportunity for Ripple given the evolving market landscape, although it will face competition from existing stablecoins like USDT and USDC.

The introduction of the stablecoin is expected to impact Ripple's DeFi ecosystem on the XRP Ledger and potentially enhance the utility and liquidity of the XRP token. While the price of XRP has been stagnant due to the legal battle, the introduction of a stablecoin could boost market confidence and positively affect XRP's value.

Currently, XRP is trading at $0.59, showing a modest increase over the past 24 hours with a slight decline over the past seven days. The rollout of the Ripple stablecoin could potentially revitalize the XRP ecosystem and contribute to its overall market performance.