Ripple to issue US-backed stablecoin to bring more liquidity to XRP Ledger

The cryptocurrency will initially be available on XRP Ledger and Ethereum blockchains.

Ripple announced its plan to issue stablecoin pegged to the US dollar, taking advantage of the projected growing market for the said cryptocurrency.

“This move is also monumental for the XRP Ledger community, driving more use cases, liquidity and opportunities for developers and users,” said Ripple CEO Brad Garlinghouse in a statement.

The company said the stablecoin market is currently valued at $1.17t (US$150b), and is forecasted to exceed $21.92t (US$2.8t) by 2028. This shows that there is “demand for stablecoins that deliver trust, stability, and utility," it added.

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Ripple said its stablecoin will be fully backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. This will be launched on XRP Ledger and Ethereum, then expanded to more blockchains, decentralised finance protocols, and apps over time.

A third-party accounting firm will audit the reserve assets which will be published by Ripple.