Story Highlights
- Ripple Stablecoin Launch Set By the end of 2024, intends to introduce its stablecoin backed by the US dollar, joining the steadily expanding stablecoin industry.
- The move taps into increased institutional demand for crypto, spurred by the launch of Bitcoin ETFs and the tokenization of conventional assets. • Notwithstanding the new stablecoin, XRP will continue to be an essential “relay asset” allowing transactions between fiat and tokenized assets.
The cryptocurrency XRP is powered by Ripple, a blockchain powerhouse that is causing waves in the industry with its bold aim to provide a US dollar-backed stablecoin by the end of 2024. This smart move puts Ripple as a powerful rival in the rapidly rising stablecoin sector, predicted to reach a startling $3 trillion in total market capitalization over the next five years.
Accepting the Revolution of Stablecoins
Monica Long, the president of Ripple, recently spoke with CNBC on the company’s dedication to launching its stablecoin and emphasized the thorough preparations that are being made. “We are working on everything you need to do to bring a product like this to market,” Long said, listing institutional relationships and regulatory compliance as top concerns.
Long highlighted the growing demand for stablecoins, which facilitate seamless access to US dollars while leveraging blockchain technology for instantaneous cross-border payments. “There is now a real appetite for this type of crypto assets,” she noted, underscoring the immense potential of the stablecoin ecosystem.
Maintaining XRP’s Indispensable Role
While Ripple forges ahead with its stablecoin ambitions, the company remains unwavering in its support for XRP, its flagship cryptocurrency. Long reassured that XRP will continue to play a critical role as a liquid relay asset, facilitating exchanges between traditional fiat currencies and tokenized real-world assets.
“Even after the launch of our stablecoin, XRP will remain indispensable as a liquid relay asset,” she affirmed, highlighting Ripple’s commitment to the XRP ecosystem.
Long also highlighted the increased interest from institutions in cryptocurrencies due to the tokenization of traditional financial assets and the recent introduction of exchange-traded funds (ETFs) with a focus on Bitcoin. The CEO of Ripple, Brad Garlinghouse, has previously stated that he was certain an XRP spot ETF would eventually come about and that it was a reasonable move to satisfy the market for varied investment baskets.
With its entry into the stablecoin market, Ripple further cemented its standing as a pioneer in decentralized banking and cross-border payments as it maneuvers through the ever-changing cryptocurrency ecosystem. Ripple has the potential to revolutionize international transactions in the future with its cutting-edge stablecoin offering and XRP’s enduring popularity.
