Welcome again to HODL FM. Your guiding light through the crypto industry. No blinking, no fuzziness but a clear, straight-to-the-point pathway into digital assets.
Related: XRP Rises from the Ashes and Becomes 4th Largest Crypto
Our Topic for Today is Ripple Lab’s Recent Announcement for an Upcoming Stablecoin
Ripple (XRP) is planning to unveil a stablecoin pegged to the United States Dollar. The new token will be fully backed by cash equivalents, short-term treasuries, and U.S. Dollar deposits. Ripple Founder Brad Garlinghouse told CNBC that the stablecoin will initially launch on the XRP ledger, followed by the Ethereum blockchain.
Although lucrative at a staggering valuation of $150 billion, the stablecoin market has dominant players like Tether, central banks are also willing to test the waters with stable CBDCs, as well as the emerging algorithmic stablecoins such as the recently launched USDe by Ethena.
For Ripple, the CEO is apparently not shaken by the competition. He even promised his company is looking to deploy more trustworthy alternative assets than the likes of Circle’’s USDC, and Tether’s USDT. In the announcement, Garlinghouse pointed out despite the market being sort of crowded, it still does have plenty of room for growth. The blockchain company’s goal is to differentiate its stablecoin offering from competitors by ensuring a compliance-first approach. Moreover, Ripple CTO David Schwartz said they would guarantee 100% transparency by partnering with top-tier accounting firms for regular auditing.
David is the CTO of Ripple Labs, and his name leaves a Deja Vu of Nickelodeon’s Henry Danger every single time it gets mentioned. You probably should meet Schwoz Schwartz in Henry Danger, the CTO of the mancave. He even built himself a shape-shifting android girlfriend called Gerta.
Compliance Will Comes First
Back to the main menu, Ripple’s CTO highlighted during the announcement of the upcoming stablecoin that their strong balance sheet at Ripple Labs, and their pursuit for compliance would strongly position them for a significant market share. This is enough for them even if they won’t become the most dominant market player, besides no one wants the whole cake for themselves alone. That would be selfish. (He didn’t say that last part though).
Through the new offering, Ripple Labs is exploring fresh revenue opportunities for expanding its existing business model which majorly relies on vending the XRP Ledger, RippleNet Protocols, and On-Demand Liquidity. The success of these offerings might be hampered by the volatile risks of a cryptocurrency like XRP which both of us know is unpegged. Yet, Ripple Labs sells its offerings by way of partnerships which might end unsuccessful with financial institutions looking for more stabilized currency values.
Ripple’s Success over the Years has been Thanks to Institutional Adoption
Over the years, Ripple has successfully built a vibrant community, the XRP Army, stood up for a cause in taking on the Securities and Exchanges Comission (SEC), and even maintained its position among the top 10 largest cryptocurrencies by market capitalization for several years.
More Info:
The next chapter for Ripple aims at capturing a larger market share than it currently has; by packaging its stablecoin offering in a way that attracts small-and medium-sized enterprises (SMEs), institutional-grade adoption. and non-banking financial organizations.
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
