Ripple Labs, a leading real-time gross settlement company leveraging blockchain technology, has announced plans to launch a multi-chain stablecoin, pegged to the US dollar at a 1:1 ratio. According to the announcement, the Ripple-backed stablecoin will first be issued on the XRP Ledger using native XRPL functionality and on the Ethereum network via an ERC-20 token standard.
Soon, Ripple intends to expand to other blockchains, DeFi protocols, and applications to reach more users seamlessly.
What does Ripple's new stablecoin mean?
Ripple has become a major Web3 company through strategic acquisitions over the past few years, despite notable headwinds related to the ongoing lawsuit filed by the US SEC. The launch of a trust-backed stablecoin will solidify Ripple's reputation as a powerhouse in the interconnection of traditional financial institutions and the Web3 space.
“Institutions entering this space succeed by partnering with compliant and crypto-native players, and Ripple’s track record and resilience speak for themselves as we launch new products and acquire businesses across several market cycles”, Brad Garlinghouse, CEO of Ripple, note.
The new Ripple-backed stablecoin comes after the XRPL network adopted a native automated market maker (AMM) to improve XRP liquidity. As the XRPL network already has an integrated DEX, the introduction of a reputable stablecoin will improve adoption of the company's payment products.
Impact on XRP Price Action
Following this announcement, which attracted the attention of the entire crypto community, the price of XRP rose to 61 cents on Thursday at the start of the New York season.
The large-cap altcoin, with a fully diluted valuation of around $60 billion, is on the cusp of a major bullish tumult. From a technical perspective, XRP price against the US Dollar is retesting the bullish breakout of a macro-downside logarithmic trend.