USDC stablecoin (USDC) launched on the XRP Ledger (XRPL)

Circle's USDC stablecoin (USDC) launched on the XRP Ledger (XRPL) on Thursday, bringing the overcollateralized dollar-pegged token to users of the layer-1 blockchain network.

Circle's USDC stablecoin (USDC) has launched on the XRP Ledger (XRPL), bringing the overcollateralized dollar-pegged token to users of the layer-1 blockchain network.

The integration of USDC on XRPL will enable investors to use XRP as a bridge currency for transferring their stablecoins between decentralized exchanges (DEXs) via an auto-bridging feature, according to an announcement by Ripple.

Support for USDC on the XRPL comes amid a concerted push to establish comprehensive stablecoin regulations in the United States, as the sector swells to over $237 billion in market capitalization, holding geo-strategic and macroeconomic implications.

"We are thrilled to welcome USDC to the XRP Ledger and to continue to provide efficient and cost-effective solutions that meet the needs of the rapidly evolving blockchain ecosystem," said Markus Infanger, senior vice president at RippleX.

"With the integration of USDC, XRPL offers new possibilities for DeFi and Web3 projects to launch and scale their initiatives in a values-aligned environment, fostering the next phase of the metaverse and the open economy."

The move comes after a turbulent period for the crypto sector, marked by significant price drops and layoffs in the industry. Despite the challenges, the sector continues to innovate, with new projects and technologies emerging regularly.

The launch of USDC on XRPL is part of Ripple's broader strategy to expand the use of its products and services in the crypto market. The company's flagship product, XRP, is a cryptocurrency that can be used for cross-border payments and foreign exchange transactions.

XRPL is a public, open-source and decentralized ledger that serves as a neutral and efficient platform for banks, payment providers and DeFi projects to seamlessly connect and interoperate. It is designed to process high volumes of low-cost transactions quickly, offering efficient and scalable solutions for various use cases.

The integration of USDC on XRPL provides seamless compatibility with the broader DeFi ecosystem and facilitates the development of new use cases and applications within the XRPL ecosystem.

Insiders noted that USDC on XRPL will be launched by a third-party partner, not Ripple itself. The partner is said to be handling the technical integration and will deploy a USDC token on XRPL, distinct from the original on Ethereum.

The partner will also be responsible for facilitating the auto-bridging feature, which will allow users to easily transfer their USDC between XRPL and Ethereum DEXs using XRP as a bridge currency.

This partnership underscores Ripple's commitment to fostering an inclusive and interconnected ecosystem within the blockchain sphere.