HomeNewsRipple Projects $3 Trillion Stablecoin Market with Upcoming USD-backed Coin

Ripple Projects $3 Trillion Stablecoin Market with Upcoming USD-backed Coin

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  • 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. 

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.

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.

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.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628