The crypto firms Circle and Tether are the leading figures in the stablecoin segment. They will soon have to count Ripple against their competitors in this market. The company behind XRP announced that it plans to enter this ecosystem and revealed its plan to do so.
Ripple's plan to conquer the crypto stablecoin segment
Ripple, the crypto firm behind XRP has just announced interesting information regarding the stablecoin market. She plans to launch into this emerging sector despite the controversies that have marred it in recent months.
The company's plan for the realization of this project is very simple. It is essentially about introducing a stablecoin backed by the US dollar. An introduction which will initially be given to the XRP Ledger and the Ethereum blockchain.
For the moment, the managers have not communicated any information regarding the ticker of the future Ripple stablecoin. But according to David Schwartz, Ripple's technical director, the company wants to focus its approach on compliance.
For him, the emphasis on transparency is not trivial. This is the key that Ripple wants to use to protect itself from the setbacks experienced in recent months by the behemoths of the stablecoin sector, namely USDC and USDT.
The Circle model as inspiration
According to David Schwartz, Ripple intends to draw inspiration from the operational model developed by Circle with USDC. Thus, the crypto company plans to guarantee its stablecoin with dollar deposits, short-term US Treasury bills and other liquid assets.
Furthermore, it will ensure that monthly certificates from external auditors reassure investors regarding its reserves. A choice which clearly draws lessons from the difficulties encountered by Tether with USDT.
However, David Schwartz is not naive. He recognizes the skepticism that this project could raise surrounding the introduction of a new stablecoin. But he remains confident that Ripple's credibility, track record and financial strength will make the difference.
In any case, Ripple's objective is clear. The company wants to establish itself as a leading player in the stablecoin space. Even if it means ranking third in this booming market. Basically, this project by Ripple is a strategic expansion, which builds on its expertise and reputation in the crypto market.
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