WATCH: Ripple Labs Announces GAME CHANGING Move, The End Of XRP?

April 11, 2024 10:28 am Comments

Ripple Labs has announced a game-changing development as the crypto firm sets its sights on a $150 billion market.

According to the latest reports, Ripple is planning to launch a Ripple stablecoin. The stablecoin will be a 1:1 USD-backed digital asset.

Ripple’s entry into the lucrative stablecoin market could potentially cause a significant surge in revenues for the blockchain company.

These revenues will come in the form of holding low-risk U.S. bonds, treasuries, and cash equivalents that accrue interest.

However, some sources believe that this recent announcement could bode ill for Ripple’s native currency, XRP, and see it as a sign that XRP’s role will be replaced by the stablecoin.

Meet Kevin, a popular crypto and finance YouTuber, broke down the details in this informative video:

According to CNBC:

The crypto firm said its reserves would be accounted for in publicly available monthly attestation reports. It did not say which firm will audit.

Ripple is first launching its stablecoin in the U.S., but didn’t rule out offering additional regional products in non-U.S. markets, like Europe and Asia.

Analyst “The Bearable Bull” explained: “Ripple Needs A New Way To Make Money That’s NOT SELLING XRP. This Stablecoin Will Allow 3 New Income Streams For Ripple.

New Income Streams [equals] No More Selling Of XRP & Future IPO Preparation. The Big Picture Just Got Very Exciting.”

CoinDesk was critical of XRP’s current performance and saw the recent stablecoin announcement as trouble for Ripple’s native currency:

In many ways Ripple’s existing business model — selling financial services based around its XRP Ledger as well as On Demand Liquidity and RippleNet protocols — is falling short.

Although Ripple has seen some success forming partnerships, it seems increasingly clear legitimate financial institutions do not want to take on the volatile currency risks of working with unpegged digit assets.

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