Ripple CEO Brad Garlinghouse recently discussed the company’s plans to enter the stablecoin market and capture a significant share. In an interview with Fox Business, Garlinghouse highlighted that the stablecoin market is currently valued at $150 billion and could potentially reach $2.8 trillion by 2028. Ripple’s upcoming stablecoin, set to launch on the XRP Ledger and Ethereum later this year, aims to bridge the gap between cryptocurrencies and traditional finance.
Garlinghouse acknowledged the dominance of non-US-based stablecoin issuer Tether in the market and emphasized the importance of regulation. He believes that a compliance-first approach from a US player will have a significant role to play in the growing stablecoin market. Despite regulatory concerns in the US, Ripple has focused on serving non-US clients, with 95% of its customers being non-US financial institutions.
Ripple plans to build a robust infrastructure around its stablecoin, recognizing the immense opportunities it presents for the company and its native asset, XRP. The stablecoin will offer several advantages, including a transparent reserve backed by the USD and other high-liquid assets. To ensure transparency, Ripple will engage a third-party accounting firm to regularly audit and publish reports on the stablecoin reserve.
The stablecoin system will be developed with enterprise-grade security features, aligning with Ripple’s reputation for providing enterprise-grade blockchain solutions. Compliance is also a priority for Ripple, as the company actively seeks regulatory approvals in key regions. This commitment ensures that the stablecoin will operate within legal frameworks.
Furthermore, the stablecoin will enhance liquidity on the decentralized exchange of the XRP Ledger, allowing for increased trading opportunities. The stablecoin will initially launch on the XRP Ledger and Ethereum networks, catering to a wide range of users within the crypto ecosystem. Ripple also plans to expand to other leading blockchains in the future, similar to efforts made by Circle and Tether.
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