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XRP issuer Ripple is moving forward with plans for a stablecoin after CEO Brad Garlinghouse teased the idea during Consensus 2024.
Ripple (XRP) has begun work on a fiat-pegged token called Ripple USD, or RLUSD, as the company takes aim at a $160 billion stablecoin market currently dominated by Tether (USDT). The digital payments giant x&utm_medium=organic_social&utm_campaign=cont-blog-global-stablecoin-mainnetdeployment-all-2024-q3&utm_content=thread_static” target=”_blank” rel=””>saying Private beta testing has begun on the XRP ledger and ethereum mainnet, the second-largest cryptocurrency blockchain by market capitalization.
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At Consensus 2024, Garlinghouse told attendees that the stablecoin market had a high ceiling and could become a $3 trillion industry by 2030. Ripple president Monica Long also indicated that XRP would likely launch its stablecoin token this year.
An announcement on August 9 said that RLUSD will operate as a token backed by US dollars at a 1:1 ratio. The firm plans to use cash deposits, Treasury bonds, and cash equivalents as reserves. Ripple also committed to publishing monthly certifications and using a third-party accounting firm for audits. The official statement suggests a move toward regulatory compliance and approval.
Ripple to enter stablecoin industry
Entering the stablecoin market means competing directly with incumbents like Tether and Circle’s USD Coin (USDC), even if Ripple’s CEO stressed that there is ample room for all players to grow.
Specifically, Circle has demonstrated its ability to comply with strict stablecoin regulations in Europe. Circle is also set for an initial public offering in the United States and could become the first stablecoin company to list its shares.
US policymakers are considering regulating stablecoins that could greenlight banks’ involvement in the space. Lawmakers such as Patrick McHenry and Maxine Waters are said to have made progress on drafting such a bill.
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