Jeremy Allaire, the Chief Executive Officer of stablecoin provider Circle, has expressed support for Ripple's move into the market.

Today, Ripple announced its intention to introduce a stablecoin fully backed by US dollar deposits, government bonds, and cash equivalents.

Allaire commended the choice of a "compliance-first approach" by more companies entering the realm of on-chain dollars.

Circle, the creator of USD Coin (USDC), the second-largest stablecoin based on market capitalization, has experienced a resurgence, notably performing the best among major stablecoins in the first quarter of the year.

Despite this, Tether's USDT remains the primary stablecoin, capturing about 70% of the market and boasting a capitalization of $104 billion.

Ripple's Stablecoin Rollout

Ripple's decision to launch a stablecoin pegged to the dollar on XRP Ledger and Ethereum later this year reflects the growing demand for such assets, with the market projected to exceed $2.8 trillion by 2028.

The introduction of a trusted enterprise-grade stablecoin on the XRPLedger is expected to enhance DeFi activities, provide additional liquidity, and create more opportunities for developers and users.

Brad Garlinghouse, Ripple's CEO, emphasized that this step aligns naturally with the company's industry expertise and will elevate the utility and liquidity of XRPL, offering fresh opportunities for developers and users.

Monica Long, Ripple's President, echoed these sentiments by highlighting that issuing the stablecoin on the XRP Ledger and Ethereum will unlock new prospects for institutional and DeFi use cases across various ecosystems.

In response to this development, XRP defied its downtrend and surged more than 4%, reaching $0.61 before retracing to $0.5978 as per CryptoSlate's latest data.