Ripple May Launch USD-Backed Stablecoin in June, Hints CTO David Schwartz
Ripple is rumored to be preparing for the launch of its highly anticipated XRP stablecoin, which will be backed by the US dollar, according to hints dropped by the company’s CTO at a recent event.
During the XRP Las Vegas conference held on May 3-4, David Schwartz, Ripple’s chief technology officer, provided insights into the firm’s upcoming integrations. He discussed various aspects of the XRP Ledger, including automated market makers, a lending protocol, Ripple stablecoin, and artificial intelligence.
Schwartz revealed that more details about Ripple’s stablecoin will be unveiled next month at the XRPL Apex event in Amsterdam.
The proposed stablecoin by Ripple is expected to have a 1-to-1 backing by US dollar deposits, US government bonds, and other low-risk investments. The mere mention of the development of a Ripple stablecoin by Schwartz has sparked significant interest among the XRP community.
As previously announced by the company, the goal of the stablecoin is to promote more use cases, liquidity, and opportunities for developers and users. It also aims to provide a more reliable alternative to assets like Tether’s USDT and Circle’s USDC.
Furthermore, the launch of a stablecoin is expected to have a transformative effect on the entire XRP Ledger ecosystem, given the highly lucrative nature of the market.
Ripple’s foray into the stablecoin market, as announced last month, comes in the wake of Bitcoin reaching a staggering high of $73,000 this year.
The recent approval of spot Bitcoin ETFs by the US Securities and Exchange Commission has prompted a new wave of venture capital investment in speculative projects.
Markus Infanger, senior vice president at Ripple, described the stablecoin as a “portal” that bridges the traditional capital and crypto markets.
“Our market analysis clearly shows that stablecoins are playing a significant role,” Infanger stated. “They are here to stay, and they have been experiencing significant growth. We firmly believe that this growth will continue to be strong.”
The stablecoin market has become increasingly competitive in recent times. Last month, Nick van Eck, son of investment manager Jan van Eck, raised $12 million to launch a stablecoin. Payments giant PayPal and French bank Société Générale also introduced their own stablecoins last year.
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