Ripple CEO Brad Garlinghouse recently discussed the company’s upcoming stablecoin and its plans to dominate the stablecoin market in an interview with Fox Business. The stablecoin, set to launch on the XRP Ledger and Ethereum later this year, aims to bridge the gap between cryptocurrency and traditional finance.
Garlinghouse highlighted the immense potential of the stablecoin market, which is currently valued at $150 billion and projected to reach over $2.8 trillion by 2028. With the launch of its stablecoin, Ripple intends to capture a significant portion of this rapidly growing market.
Garlinghouse also emphasized the importance of regulatory compliance in the stablecoin market. While many players in the market, such as Tether, are non-US entities, Garlinghouse believes that a compliance-first US player has a great role to play in the industry. Ripple has been catering to non-US clients due to regulatory concerns in the United States, with 95% of its customers being non-US financial institutions.
In terms of the benefits of Ripple’s stablecoin, it will be backed by the US dollar and other highly liquid assets. To ensure transparency, Ripple will employ a third-party accounting firm to regularly audit the stablecoin reserve and publish monthly reports on its backing. The stablecoin will also be developed with enterprise-grade security features, reflecting Ripple’s reputation for developing robust blockchain solutions.
Ripple’s commitment to regulatory compliance extends to its stablecoin, as the company actively obtains the necessary licenses in key regions. This compliance-first mindset will foster trust among users and ensure the stablecoin operates within the bounds of the law.
The stablecoin will also provide liquidity on decentralized exchanges, including XRPL’s native DEX. This will increase liquidity and offer users and developers numerous benefits.
Additionally, the stablecoin will launch on both the XRPL and Ethereum networks, catering to a wide range of users within the crypto ecosystem. While the initial plan is to launch on these two networks, Ripple aims to expand its stablecoin to other top blockchains in the future, following the footsteps of Circle and Tether.
It is important to note that this article is for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct thorough research before making any investment decisions.