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Ripple Unveils Landmark Stablecoin Issuance Plan, Bridging Traditional Finance and Crypto
San Francisco, California - Ripple, the leading provider of enterprise blockchain and crypto solutions, has announced its pivotal plan to launch a stablecoin, pegged 1:1 to the US dollar. This strategic move catapults Ripple to the forefront of the rapidly growing stablecoin market, estimated to surpass $2.8 trillion by 2028.
Ripple's stablecoin will stand apart in the market with its unwavering commitment to transparency and trust. Backed 100% by US dollar deposits, short-term US government treasuries, and other cash equivalents, the stablecoin's reserves will undergo rigorous audits by an independent third-party accounting firm. Ripple will further enhance confidence by publishing monthly attestations, ensuring the integrity and reliability of the asset.
"This is a pivotal step for Ripple as we continue to bridge the gap between traditional finance and crypto," asserted Brad Garlinghouse, Ripple CEO. "Institutions entering this space recognize the value of partnering with compliant, crypto-native players. Ripple's unparalleled track record and resilience speak volumes as we unveil new products and acquire companies through multiple market cycles."
Recognizing the diverse needs of users, Ripple will launch its stablecoin across multiple blockchains, including the XRP Ledger (XRPL) and Ethereum (ETH). This strategic move enables Ripple to tap into the liquidity and vibrant ecosystems of both blockchains, empowering developers to create innovative applications and services that leverage the stablecoin's stability and widespread accessibility.
"Issuing our stablecoin on the XRPL and Ethereum will provide a pivotal entry point to unlock new opportunities for institutional and DeFi use cases across multiple ecosystems," said Monica Long, Ripple president. "The XRPL's inherent capabilities, including a decentralized exchange and automated market maker, were designed to utilize XRP as the bridge asset. Bringing a trusted stablecoin onto XRPL will drive adoption, fuel development, and foster a thriving ecosystem."
Ripple's stablecoin offers a compelling value proposition for both institutional and retail users:
- Institutional-Grade Solution: Ripple specializes in blockchain-based, enterprise-grade solutions tailored to the specific needs of financial institutions and enterprises. With its stablecoin, Ripple will leverage both XRP and the stablecoin in its payment solution, further enhancing customer experience and establishing an industry-leading use case for the asset.
- Emerging Market Demand: Ripple's extensive customer base in emerging markets has expressed a strong desire for stablecoin payouts, recognizing the stablecoin's ability to mitigate price volatility and facilitate seamless cross-border transactions.
- Regulatory Compliance: Ripple prioritizes regulatory compliance, maintaining a growing portfolio of licenses in key jurisdictions worldwide. This includes a New York BitLicense, nearly 40 money transmitter licenses across the US, a Major Payment Institution License from the Monetary Authority of Singapore, and a Virtual Asset Service Provider registration with the Central Bank of Ireland.
- License Expansion: Ripple's recent acquisition of Standard Custody, one of the few crypto companies that holds a NY Trust Charter, further expands its license footprint, enabling Ripple to better serve enterprise customers.
Furthermore, Ripple's stablecoin will support cross-chain interoperability, allowing users to seamlessly transact across different blockchains, unlocking the full potential of decentralized finance and global payment systems.
"We are excited about the potential of our stablecoin to transform the global financial landscape," said Garlinghouse. "By leveraging our deep expertise in blockchain technology, commitment to regulatory compliance, and unwavering focus on customer satisfaction, we are confident that our stablecoin will become a trusted and widely adopted asset."
Ripple's stablecoin issuance marks a pivotal moment for the company and the broader crypto ecosystem. As an industry leader in enterprise blockchain solutions, Ripple is uniquely positioned to bridge the gap between traditional finance and crypto, enabling institutions to harness the power of blockchain technology and drive innovation within the global financial system.
About Ripple
Ripple is the leading provider of enterprise blockchain and crypto solutions for global payments. Its flagship product, RippleNet, is a network of financial institutions that use Ripple's blockchain technology to send and receive
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