American blockchain payments firm, Ripple Labs Inc., has announced plans to launch a stablecoin asset that will rival the dominant alternative stablecoin currently on the market.
As stated by the firm, their release stablecoin is believed to change the landscape of the crypto market with added transparency about its holdings. As stated by the firm, this stablecoin will be pegged at a 1:1 ratio with the US Dollar and its holdings will depend on various assets.
To strengthen the stablecoin in the market, Ripple Labs says it will conduct a comprehensive audit in consultation with third parties and will publish monthly confirmations starting from its launch.
"This is an incredible step for Ripple to continue bridging the gap between traditional finance and crypto," said Brad Garlinghouse, Ripple's Chief Executive Officer.
As a payments firm, Ripple Labs faces several forms of restrictions in its ability to innovate due to lengthy lawsuits with the US Securities and Exchange Commission (SEC). However, a partial victory last July pushed the firm into a new era. The proposed stablecoin would further relieve pressure on XRP, its related digital currency that has been used as a payment token to power its On-Demand Liquidity (ODL) service for years.
Based on the announcement, Ripple Labs Stablecoin will be published on top of the XRP Ledger (XRPL). To push its decentralization agenda, the firm says it will also issue its stablecoin on Ethereum (ETH) with plans to expand this reach to other protocols over time.
The stablecoin market is an important one for the blockchain ecosystem. With Tether (USDT) and the US Dollar token (USDC) dominating with more than 106 billion and 32.8 billion in circulating units, Ripple believes that its alternative stablecoin has the business connection to gain a large market share from Tether.
