Ripple to Launch USD-Backed Stablecoin, Boosting XRP Ledger

Ripple is set to issue a new stablecoin pegged to the US dollar, bringing more utility and liquidity to the XRP Ledger

Leading provider of enterprise blockchain and crypto solutions, Ripple, has announced plans to launch a stablecoin pegged 1:1 to the US dollar (USD). 

The crypto provider’s new stablecoin will be 100% backed by USD deposits, short-term US government treasuries and other cash equivalents. 

Ripple says reverse assets will be audited by a third-party accounting firm, with Ripple set to publish monthly attestations. 

Ripple: More utility to XRP Ledger 

Ripple’s latest news marks its first foray into what is a burgeoning stablecoin market – which, for many investors, represents a less volatile means of engaging with the cryptocurrencies.

The data backs this up, with the stablecoin market worth an estimated US$150bn today. And, in just four years, Ripple predicts the market will exceed a staggering US$2.8tn. 

This is why Ripple is tapping into the stablecoin space today, leveraging its decade-plus of experience in building real-world financial solutions for institutions around the world. 

Last year, The People's SCE CEO and Co-Founder, Bernhard Blaha, spoke to us about the emerging value of stablecoins to open up new markets for businesses worldwide. 

Now, Brad Garlinghouse, Ripple CEO, says: “This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto.

“Institutions entering this space are finding success by partnering with compliant, crypto-native players and Ripple's track record and resiliency speaks for itself, as we launch new products and acquire companies through multiple market cycles. 

“This move is also monumental for the XRP Ledger community, driving more use cases, liquidity and opportunities for developers and users.”

Upon its launch, Ripple’s new stablecoin will be available on both the XRP Ledger and Ethereum blockchains. And, in the coming months, Ripple plans to expand its new stablecoin to additional blockchains and decentralised finance (DeFi) protocols.

Key benefits of Ripple’s stablecoin include:
  • Enterprise-Grade
  • Compliance-First Mindset
  • Liquidity on the Decentralised Exchange (DEX)
  • Transparent Stablecoin Reserve
  • Multichain Compatibility

Monica Long, Ripple President, adds: “Issuing our stablecoin on the XRP Ledger and Ethereum will serve as a pivotal entry point to unlock new opportunities for institutional and DeFi use cases across multiple ecosystems. 

“The XRP Ledger’s native capabilities, including a decentralised exchange and automated market maker, were built to utilise XRP as the bridge asset. Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem.”

For Ripple, the launch of a new stablecoin comes after it partnered with the Axelar Foundation in February 2024, in a move to enhance the interoperability of the XRP Ledger across different blockchains. 


Make sure you check out the latest edition of FinTech Magazine and also sign up to our global conference series – FinTech LIVE 2024


FinTech Magazine is a BizClik brand.


Featured Articles

FinTech LIVE New York – Reasons to Attend

Returning June 2024, FinTech LIVE New York will be the ultimate event to connect the world’s influential fintech leaders in North America

FinTech LIVE New York – One Month to Go!

Just one more month to go until FinTech LIVE New York, don’t miss out on attending the ultimate virtual event for fintech leaders in North America

The Global FinTech Awards: The Categories – Part 3

Discover the awards that your company, executive or project could be honoured with at The Global FinTech Awards 2024

SUBMISSIONS EXTENSION: The Global FinTech Awards 2024

Tech & AI

Joel Perlman, Co-founder, OakNorth joins FinTech LIVE London

Financial Services (FinServ)

The Global FinTech Awards: The Categories – Part 2

Financial Services (FinServ)