Ripple has entered the lucrative stablecoin market, valued at $150 billion, by introducing its own digital currency pegged to the US dollar, reports UnlockBC.
This stablecoin will maintain a 1-to-1 backing with assets such as US dollar deposits, US government bonds, and cash equivalents held in reserve by Ripple. The company has committed to providing monthly attestation reports on its reserves, although the auditing firm has not been disclosed.
Initially launched in the United States, Ripple is considering expanding its stablecoin offerings to other regions such as Europe and Asia, reports UnlockBC.
This move positions Ripple in competition with established stablecoin giants like Tether and Circle, which issue USDT and USDC, respectively. Additionally, PayPal has recently introduced its own stablecoin, PayPal USD, in partnership with Paxos.
