Ripple Makes Waves in Stablecoin Market with New US Dollar Pegged Token

The CEO announced, “Sustainability of the Ripple stablecoin will be done by a single reserve of U.S. dollar investments, its Government shares, and monetary assets.”

Garlinghouse claims stablecoin would offer a safe investment alternative when it launches towards the end of the year at a set price of $1.

Approximately $150 billion is the market value of stablecoins, and major players in the space, such USDT and USDC, are well-established. Garlinghouse positively believes the opening of the ripple stable coin will be a wise decision for the business. It will also embrace an innovative advantage in the competitive market presently.

For the foreseeable future, Ripple believes there will be value in the stablecoin market. Based on size alone, Garlinghouse thinks the industry “will appear distinctively” According to Chief Technology Officer of Ripple Labs, David Schwartz, the industry will be above $2 trillion by 2028,  with just 2 leaders to oversee the market.

Reasons for Ripple Coin Release

The exchange value of $106.2 billion for USDT, which became the popular stablecoin, reduced below $1 during the terraUSD crash time previously in 2022.

Furthermore, USDC also briefly fell below $1 in 2023 after it became apparent that it is liable to the failure of Silicon Valley Bank.

After these incidents, questions arises concerning Tether. Many detractors wonder where the corporation gets its reserves from and are no longer certain that it has enough money to withstand a bank run.

 Insights from Ripple’s CEO Report

Garlinghouse emphasizes that Ripple made a calculated choice to launch a new stablecoin during the previous year. Thus highlighting the company’s proactive reaction to market development and dedication by preserving a strong position in the cryptocurrency industry in the face of difficult circumstances.

He raises major issues over safety and openness in relation to Ripple’s proposal to engage a third-party company. This is to perform and release monthly declarations on its stablecoin reserves, which will reveal which banking partners handled the asset management.

Garlinghouse states that the Ripple stablecoin will initially launch in the United States and then spread to other countries. Ripple Labs is yet to select which trading platform it would offer it first. He adds that the goal of XRP, the native token of Ripple Labs, will not dominate the introduction of the stablecoin.