- Ripple’s stablecoin aims to connect traditional finance to crypto using XRP Ledger’s decentralized exchanges and market making.
- XRP price dropped 2.45% after failing to surpass $0.5293 resistance level, finding support around $0.5162 in recent trading.
Ripple, estimates the stablecoin market will reach $3 trillion by 2028. It plans to release a USD-backed stablecoin in June while facing scrutiny from the Securities and Exchange Commission (SEC).
During the XRP Las Vegas conference, Ripple’s Chief Technology Officer, David Schwartz, hinted that the stablecoin would launch in June. The new coin will be backed by U.S. dollar deposits, government bonds, and cash equivalents, maintaining a 1:1 peg to the dollar for stability.
It is estimated that the stablecoin market could reach $3T by 2028.
Understand the role stablecoins play in the financial markets and learn about their use cases and how they push financial services innovation. https://t.co/F9zxkNVMnw
— Ripple (@Ripple) May 8, 2024
Ripple aims to connect traditional financial systems to the crypto industry using the XRP Ledger for decentralized exchanges and automated market-making. More details will be revealed at the XRPL Apex event in Amsterdam in mid-June.
#XRPCommunity #SECGov v. #Ripple #XRP The @SECGov has filed its redacted remedies reply brief & supporting exhibits.https://t.co/qZ6GTtSFmL
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 7, 2024
However, Ripple faces obstacles due to SEC oversight. In a recent filing, the SEC called the stablecoin an “unregistered crypto asset” and sought an injunction against the company to prevent future unregistered activities. The SEC claims that Ripple has sold XRP in institutional sales without registration and that it evaded U.S. securities laws.
Ripple’s legal team denied these allegations, arguing that their compliance with international regulations shows adherence to global standards. Stuart Alderoty, Ripple’s Chief Legal Officer, expects a favorable resolution to the SEC case soon, criticizing the SEC’s enforcement methods. He said the company is closer than ever to settling the case.
And just when you think the SEC can’t sink any lower, if you are a financial regulator outside the U.S. and have done the hard work of establishing comprehensive crypto licensing frameworks, know that the SEC has no respect for you and thinks you are handing out the equivalent of… pic.twitter.com/7qZQIkyrH4
— Stuart Alderoty (@s_alderoty) May 7, 2024
The company’s market prediction aligns with existing stablecoin trends. Fiat-backed or commodity-backed stablecoins are stable and offer faster processing for international payments, remittances, and cryptocurrency trading pairs. They also support decentralized finance (DeFi) services like lending, borrowing, and yield farming.
Tether (USDT) and USD Coin (USDC) dominate as the most reliable stablecoins due to reserve backing. Crypto-backed stablecoins like DAI are popular in DeFi protocols. Although riskier, algorithmic stablecoins attempt innovative approaches to monetary policy.
XRP’s price has been declining for 24 hours after failing to cross the $0.5293 resistance level. This downward trend lowered the price to $0.5162, where support was found. As of this writing, XRP trades at $0.5163, a 2.45% decrease over the past day.
