Economy 06-05-2024 12:01 21 Views

Ripple to Launch USD-Backed Stablecoin in June? CTO David Schwartz Hints

Ripple is reportedly planning to launch its much-anticipated USD-backed XRP stablecoin, the company’s CTO hints at an event.

The information surfaced during the XRP Las Vegas conference on May 3-4, where David Schwartz, the chief technology officer of Ripple, revealed the firm’s upcoming integrations. He presented information on XRP Ledger, including automated market makers (AMM), lending protocol, Ripple stablecoin and AI.

Infos about @Ripple‘s stablecoin is expected to be announced in a month at the XRPL Apex event in Amsterdam – @JoelKatz

— Jim_Knox (@JimKnox123) May 4, 2024

Schwartz noted that details on the Ripple’s stablecoin will be disclosed next month during the XRPL Apex event in Amsterdam.

The proposed stablecoin by Ripple is supposed to be backed 1-to-1 by US Dollar deposits, US government bonds and other low-risk investments. The mere mention of the development of a Ripple stablecoin by Schwartz, sparked interests among the XRP community.

Per the announcement made by the firm last month, the idea of a stablecoin is to drive more use-cases, liquidity and opportunity for developers and users. It is also aimed at creating a more trustworthy alternative to assets like Tether’s (USDT) and Circle’s (USDC).

Further, the launch of a stablecoin is expected to be a game changer for the entire XRP Ledger ecosystem as the market is highly lucrative.

Ripple’s Stablecoin Rush Follows Bitcoin Surge

Ripple’s move into the stablecoin market, announced last month, comes after Bitcoin recorded a staggering high of $73,000 this year.

The recent US SEC’s spot Bitcoin ETFs approval, 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 at the time. “They’re here to stay and they’ve been growing significantly, and we firmly believe the growth will continue to be strong.”

The stablecoin market in the recent times has been more competitive. Last month, Nick van Eck, the son of investment manager Jan van Eck, raised $12 million to launch a stablecoin. Payments giant PayPal and French bank Société Générale both launched their own stablecoins last year.

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