- Blockchain firm Ripple aims to wrestle market share from USDT and USDC with the launch of a transparent, compliance-focused dollar-backed stablecoin.
After years of focusing on cross-border payments with XRP, blockchain firm Ripple is charging into the $150 billion stablecoin market with an ambitious new product.
Today, Ripple revealed its plans for a USD-backed stablecoin that aims to wrestle market share from Tether’s USDT and Circle’s USDC, the two dominant players.
“The stablecoin market is over $150 billion today and is forecasted to exceed $2.8 trillion by 2028,” Ripple CTO David Schwartz told reporters.
“There’s a clear demand for stablecoins that deliver trust, stability and utility.”
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Ripple’s token will be 100% backed by dollar deposits, U.S. Treasuries and cash equivalents held at U.S. banks.
To instill confidence, the company will undergo monthly third-party audits and publish attestations verifying its reserve holdings, a level of transparency lacking with Tether.
The new stablecoin from the XRP issuer arrives as Ripple awaits resolution in its high-stakes SEC lawsuit over XRP’s security status.
While victorious on some fronts, with a court ruling that XRP itself is not a security, Ripple still faces charges over $728.9 million in alleged unregistered sales to institutions.
Launching its stablecoin is not just a revenue play for Ripple, but ties into advancing the XRP ecosystem.
The token will provide another liquidity source complementing XRP for Ripple’s On-Demand Liquidity product used by banks and payment firms struggling to find sufficient XRP market depth in certain corridors.
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