- Ripple’s CTO, David Schwartz, hints at the launch of a USD-backed XRP stablecoin in June.
- The announcement was made during the XRP Las Vegas conference on May 3-4.
- The move follows Bitcoin’s surge to a record high of $73,000 this year.
Ripple is set to launch a USD-backed stablecoin, a move that follows Bitcoin’s record surge. The announcement was made by Ripple’s CTO, David Schwartz, at the XRP Las Vegas conference.
Ripple’s Anticipated Stablecoin Launch
Ripple’s CTO, David Schwartz, hinted at the launch of a USD-backed XRP stablecoin during the XRP Las Vegas conference. The stablecoin, which is expected to be backed 1-to-1 by US Dollar deposits, US government bonds, and other low-risk investments, is aimed at driving more use-cases, liquidity, and opportunities for developers and users. The announcement sparked interest among the XRP community, with many seeing it as a more trustworthy alternative to assets like Tether’s (USDT) and Circle’s (USDC).
Stablecoin Market Competition
The stablecoin market has become increasingly competitive in recent times. Last month, investment manager Jan van Eck’s son, Nick van Eck, raised $12 million to launch a stablecoin. Additionally, payments giant PayPal and French bank Société Générale both launched their own stablecoins last year. Ripple’s entry into the stablecoin market, therefore, comes at a time when the market is highly lucrative and growing significantly.
Bitcoin Surge Spurs Ripple’s Stablecoin Launch
Ripple’s move into the stablecoin market comes after Bitcoin recorded a staggering high of $73,000 this year. The recent approval of the US SEC’s spot Bitcoin ETFs has spurred a new wave of venture capital into speculative projects. Markus Infanger, senior vice-president at Ripple, said the stablecoin would act as a “portal,” bridging traditional capital and crypto markets. “Our assessment of the market shows very clearly stablecoins are playing an important role,” Infanger noted. “They’re here to stay and they’ve been growing significantly, and we firmly believe the growth will continue to be strong.”
Conclusion
Ripple’s anticipated launch of a USD-backed stablecoin is a significant development in the crypto market. The move, which follows Bitcoin’s record surge, is expected to drive more use-cases, liquidity, and opportunities for developers and users. With the stablecoin market becoming increasingly competitive, Ripple’s entry could potentially reshape the market dynamics.
