According to U.Today, Ripple, the renowned blockchain-based payment protocol, has announced its intention to launch a stablecoin pegged to the U.S. dollar. The company's Chief Technology Officer, David Schwartz, known for his cryptic posts, recently sparked speculation within the XRP community with a tweet featuring a logo with the word 'Sunscream'. However, the focus quickly shifted to Ripple's future stablecoin and its potential impact on the XRP price.
Earlier this week, Ripple revealed its plans to create an asset on both the XRP Ledger and the Ethereum blockchain platform. The company's press release stated that the new asset would be fully backed by USD deposits and other cash equivalents, with funds audited by a specially hired accounting firm. Ripple plans to release attestations on a monthly basis.
The current stablecoin market is valued at $150 billion and is projected to exceed $2.8 trillion within the next four years. Ripple aims to contribute to this rapidly expanding market by leveraging its extensive experience in developing financial solutions for global financial institutions. The company's CEO, Brad Garlinghouse, stated that creating a digital bridge between the traditional financial system and the emerging world of cryptocurrencies and blockchain is a logical step for Ripple.
However, the question remains whether Ripple's future stablecoin can outperform Tether's USDT. Gabor Gurbacs, an advisor at VanEck and Tether, recently commented that he considers USDT to be the 'king' of all stablecoins in the market. Despite his support for increased competition, Gurbacs believes that only Tether has the 'right principles and history', high liquidity, the 'right geo-focus', an ideal design, and a team capable of supporting real-world use cases globally.