Blockchain firm Ripple has announced the launch of its own US dollar-pegged stablecoin, marking the company’s entry into the rapidly expanding $150 billion stablecoin market. The new stablecoin will be backed 1-to-1 by US dollar deposits, government bonds, and cash equivalents held in reserve by Ripple.
Ripple is first launching the stablecoin in the US, but the firm didn’t rule out offering additional regional stablecoins in non-US markets like Europe and Asia in the future. This move will pit Ripple against industry giants like Tether, the issuer of the largest stablecoin USDT, and Circle, the company behind USDC.
Despite the growing competition, Ripple CEO Brad Garlinghouse remains confident in the company’s ability to establish a presence in the stablecoin space. “This market will look different [in the future], certainly based on size,” Garlinghouse told CNBC.
Ripple’s foray into the stablecoin market could signal a shift in the industry as the company leverages its blockchain expertise and partnerships to challenge the more established players.
