Crypto: Ripple Enters The Race For Stablecoins Backed By The Dollar

Ripple, the blockchain company behind the XRP crypto, will venture into the stablecoin universe this year. According to its president Monica Long, the cross-border payment giant plans to issue its own digital token backed by the US dollar by the end of 2024.

Ripple could enter the stablecoin market as early as this year

According to the statements of Monica Long, the president of Ripple, the blockchain company plans to issue its own stablecoin backed by the US dollar before the end of 2024. This foray into the stablecoin sector will allow Ripple to significantly diversify its offerings amidst growing competition.

In a recent interview with CNBC, Long clearly indicated that the issuer of XRP is currently working on all the necessary aspects to bring its own stable token to market by the end of the year, citing regulatory compliance and institutional partnerships.

“We are working on everything you need to do to bring a product like this to market,” she said. 

The leader believes that there is now a real appetite for this type of crypto assets, facilitating simplified access to US dollars while enabling instant cross-border payments through blockchain technology.

According to some projections, this market could reach a combined market capitalization of over $3 trillion within 5 years, driven by the growing interest of institutional investors.

The XRP crypto will maintain a key role!

Although optimistic about the prospects of its future stablecoin, Monica Long reassured about the future of XRP, the native crypto of Ripple. Indeed, this token is expected to maintain a pivotal role as a relay asset facilitating exchanges between traditional fiat currencies and tokens representing real assets.

As the president pointed out: “Even after the launch of our stablecoin, XRP will remain indispensable as a liquid relay asset.”

Moreover, during the same interview with CNBC, Long welcomed the growing appetite of institutional investors for crypto assets. An interest fueled by recent Bitcoin-related ETF launches and the increasing tokenization of traditional financial assets.

CEO Brad Garlinghouse had previously described a future XRP spot ETF as inevitable, deeming it logical to approve various altcoin ETFs to meet the demand for diversified investment baskets.

Thus, Ripple seems determined to remain an essential player in the complementary fields of cross-border payments and decentralized finance. The upcoming arrival of a stablecoin will further enhance its range of services dedicated to international transactions.