Crypto and blockchain giant Ripple is launching its own dollar-pegged stablecoin.
With the stablecoin market worth about $150 billion, "there’s clear demand for stablecoins that deliver trust, stability, and utility," says Ripple.
The firm is planning to throw its hat in the ring later this year, subject to regulatory approval, promising a token 100% backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. Reserve assets will be audited by a third-party accounting firm.
"This is a natural step for Ripple to continue bridging the gap between traditional finance and crypto,” says Brad Garlinghouse, Ripple CEO.
“Institutions entering this space are finding success by partnering with compliant, crypto-native players and Ripple's track record and resiliency speaks for itself, as we launch new products and acquire companies through multiple market cycles."
At launch, the stablecoin will be available on the XRP Ledger and Ethereum blockchains, with plans to expand to additional blockchains and DeFi protocols and apps over time.
The stablecoin market is currently dominated by Circle's USDC and Tether's USDT but other major players, such as PayPal, have also launched tokens.
Ripple is currently locked in a legal tussle with the Securities and Exchange Commission over its XRP token.