Ripple’s Announcement of a Multichain Fiat-backed Stablecoin to Enhance XRP’s Liquidity

Ripple Labs, a prominent company specializing in real-time gross settlement and utilizing blockchain technology, has revealed its plans to introduce a stablecoin that operates across multiple chains. This stablecoin will be pegged to the United States dollar at a 1:1 ratio. The initial release of this stablecoin will take place on the XRP Ledger using the native functionality of XRPL, as well as on the Ethereum network through the ERC-20 token standard.

Ripple intends to expand its stablecoin to various other blockchains, DeFi protocols, and applications in order to seamlessly reach a broader user base.

The introduction of this new stablecoin by Ripple further solidifies its position as a major player in the web3 space, despite the challenges posed by the ongoing lawsuit filed by the U.S. SEC. By launching a stablecoin backed by fiat currency, Ripple continues to demonstrate its ability to connect traditional financial institutions with the web3 world.

“Institutions that enter this space find success by partnering with compliant, crypto-native players, and Ripple’s track record and resilience speak for themselves as we introduce new products and acquire companies across different market cycles,” stated Brad Garlinghouse, CEO of Ripple.

The development of this Ripple-backed stablecoin follows the implementation of a native Automated Market Maker (AMM) on the XRPL network, which was designed to enhance the liquidity of XRP. With the XRPL network already featuring a built-in decentralized exchange, the introduction of a reputable stablecoin will further drive the adoption of Ripple’s payment products.

The announcement of Ripple’s stablecoin garnered significant attention from the crypto community, resulting in a surge in the price of XRP. During early trading in New York, the price of XRP rose as high as 61 cents. As a large-cap altcoin with a fully diluted valuation of approximately $60 billion, XRP is poised for a major bullish trend. From a technical perspective, the price of XRP against the US dollar is currently testing a bullish breakout from a long-term declining trend.

Tags: Ripple (XRP)