Circle's CEO, Jeremy Allaire, has expressed approval of Ripple's venture into the market. Today, Ripple announced its intention to introduce a stablecoin fully backed by US dollar deposits, government bonds, and cash equivalents.

Allaire welcomed this move, stating that it's encouraging to see more companies prioritizing compliance in their on-chain dollar initiatives. Circle is the issuer of USD Coin (USDC), the second-largest stablecoin by market capitalization. The firm's asset has experienced a resurgence, emerging as the top-performing stablecoin among major competitors in the first quarter of the year.

Meanwhile, Tether's USDT remains the dominant stablecoin, with approximately 70% market control and a market capitalization of $104 billion.

Ripple's decision to launch a dollar-pegged stablecoin on XRP Ledger and Ethereum later this year stems from projections indicating the sector's growth to over $2.8 trillion by 2028, indicating substantial demand for such assets.

Ripple believes that stablecoins serve as a critical gateway to DeFi and anticipates that introducing a reliable, enterprise-grade stablecoin to the XRPLedger will create more use cases, liquidity, and opportunities for developers and users alike.

Brad Garlinghouse, Ripple's CEO, views this move as a natural progression for the company, given its history in the crypto industry. He expects it to stimulate XRPL use cases, liquidity, and opportunities for developers and users.

Similarly, Ripple's President, Monica Long, believes that issuing their stablecoin on the XRP Ledger and Ethereum will serve as a pivotal gateway to unlock new opportunities across institutional and DeFi use cases in various ecosystems.