Ripple, the enterprise blockchain and crypto solutions provider, has announced plans to launch a stablecoin pegged 1:1 to the US dollar. The asset will be backed by US dollar deposits, short-term US government treasuries, and other cash equivalents. Ripple CEO, Brad Garlinghouse, expressed confidence in the move, citing the company's track record and resilience through various market cycles.

The stablecoin will initially be available on the XRP Ledger and Ethereum blockchains, with plans for expansion to additional networks and decentralized finance (DeFi) protocols in the future. Ripple’s President, Monica Long, emphasized the transformative impact of issuing the stablecoin on the XRP Ledger, stating it will drive more adoption and development.

Key benefits of Ripple’s stablecoin include its enterprise-grade nature, compliance-first mindset, liquidity on the Decentralized Exchange (DEX), transparent reserve, and multichain compatibility. Ripple will integrate both XRP and its stablecoin into its payment system, meeting the growing demand for such payouts in emerging markets. The stablecoin will boost liquidity on the DEX by providing a credible asset for trading on the XRPL, facilitating low-cost, quick settlements worldwide.