Ripple has unveiled its intentions to introduce a stablecoin pegged to the U.S. dollar, set to debut on both the XRP Ledger and Ethereum blockchains in the near future.

Monica Long, President of Ripple, expressed enthusiasm for the project, stating, "Issuing our stablecoin on the XRP Ledger and Ethereum will serve as a pivotal entry point to unlock new opportunities for institutional and DeFi use cases across multiple ecosystems." She emphasized that incorporating a trusted stablecoin onto XRPL would bolster adoption and development within the ecosystem.

The forthcoming stablecoin, scheduled for launch later this year, will be supported by a variety of assets including USD deposits, short-term U.S. government treasuries, and other cash equivalents, according to Ripple's statement. These reserve assets will undergo regular audits by a third-party accounting firm, with Ripple committed to publishing monthly attestations.

Currently, the stablecoin market, valued at over $150 billion, is projected to skyrocket to $2.8 trillion by 2028, as highlighted in Ripple's announcement. David Schwartz, Ripple's Chief Technology Officer, reflected on the strategic timing of the stablecoin's release, citing favorable market conditions driven by rising interest rates and increased regulatory scrutiny surrounding other stablecoins like Tether.

While Tether's dominance in the stablecoin market remains significant, Schwartz acknowledged the need for diverse options, particularly within decentralized finance (DeFi) applications where concentrated risk poses challenges. He emphasized the potential for Ripple's stablecoin to appeal to small- and medium-sized enterprises, as well as non-banking financial institutions such as payment companies.

Despite Ripple's legal disputes with the U.S. Securities and Exchange Commission (SEC) regarding XRP, the company asserts its commitment to compliance and regulatory adherence. Ripple highlighted its expanding license portfolio across key global regions to underscore this commitment.

Initially, Ripple's stablecoin will be available exclusively on the XRP Ledger and Ethereum networks, leveraging XRPL native functionality and ERC20 token standards. However, there are plans to extend support to additional blockchains and decentralized finance protocols in the future, according to the company's statement.