Ripple’s USD-backed stablecoin aims to bridge traditional finance and DeFi

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The stablecoin market is expected to soar to a staggering $3 trillion within the next four years. In anticipation of this explosive expansion and recognising the escalating prominence of stablecoins in global financial ecosystems, Ripple has unveiled plans to introduce a new stablecoin pegged 1:1 to the US dollar (USD), fully backed by a combination of US dollar deposits, short-term US government treasuries, and other cash equivalents. Following its introduction, Ripple has committed to providing monthly attestations of the assets underpinning the stablecoin.

Initially, the stablecoin will be issued on both the XRP Ledger and Ethereum blockchain, leveraging XRPL native functionalities and ERC20 token standards. Developers on both XRPL and Ethereum will have the capability to integrate Ripple’s stablecoin into their platforms, enabling users to transact with confidence and stability across chains. While XRP continues to serve as the native currency on the XRPL, the Ledger was architected to support trading of any asset issued on the DEX, facilitating fast settlements across the globe at minimal transaction costs. The inclusion of Ripple’s proposed stablecoin on the DEX represents yet another choice for users, developers, and applications.

For more information about this development, visit Ripple’s article: Championing Blockchain and Crypto Utility with Ripple’s USD-backed Stablecoin.

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