Leading supplier of blockchain and cryptocurrency solutions for businesses, Ripple, has revealed intentions to introduce a stablecoin with a 1:1 US dollar (USD) peg.

The new stablecoin from the cryptocurrency provider will have full backing from short-term US government treasuries, USD deposits, and other cash equivalents.

A third-party accounting firm will audit reverse assets, according to Ripple, and the company will release attestations on a monthly basis.

Ripple: XRP Ledger's increased usefulness

With its recent announcement, Ripple is entering the stablecoin market for the first time. For many investors, stablecoins provide a less volatile way to interact with cryptocurrencies.

This is supported by data, with the stablecoin market being valued at an estimated $150 billion. Furthermore, according to Ripple, the industry will surpass an astounding US$2.8 trillion in just four years.

Ripple is entering the stablecoin market today for this reason, drawing on its more than ten years of expertise in developing practical financial solutions for global organizations.

Bernhard Blaha, the CEO and co-founder of The People's SCE, talked to us last year on the potential of stablecoins to expand global business opportunities.

"This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto," states CEO Brad Garlinghouse.

As we introduce new products and acquire businesses across several market cycles, Ripple's track record and resilience speak for itself. Institutions venturing into this field are finding success by collaborating with compliant, crypto-native enterprises.

"More use cases, liquidity, and opportunities for developers and users are being driven by this move, which is also monumental for the XRP Ledger community."

The Ethereum and XRP Ledger blockchains will support the launch of Ripple's new stablecoin. Additionally, Ripple intends to integrate more blockchains and decentralized finance (DeFi) protocols to support its new stablecoin in the upcoming months.

RIPPLE'S STABLECOIN HAS MANY BENEFITS, INCLUDING:

• Business-Level

• Compliance-Priority Mentality

• The Decentralized Exchange's (DEX) liquidity

• Reserve of Transparent Stablecoin

• Compatibility with Multiple Chains

"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," stated Monica Long, President of Ripple.

"XRP was designed to be used as the bridge asset by the XRP Ledger's inherent features, which include an automated market maker and decentralized exchange. Adding a reliable stablecoin to XRPL will encourage greater growth and acceptance, fostering a thriving ecosystem.

In an effort to improve the interoperability of its XRP Ledger across other blockchains, Ripple joined with the Axelar Foundation in February 2024, which coincided with the introduction of a new stablecoin.