Ripple Claims Asset-Backed Stablecoins Could Launch on XRP Ledger

UTC by Daria Rud · 3 min read
Ripple Claims Asset-Backed Stablecoins Could Launch on XRP Ledger
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According to Ripple CTO David Schwarz, stablecoins are a major trend among institutions and even the Central Banks this year. It is expected that stablecoins will soon launch on the XRP ledger.

Ripple‘s network RippleNet has been known as a secure way to bundle worldwide payment transactions in one place and connect users’ development activities. With its intelligent node identification, the network is significantly faster than comparable payment networks. Besides, charges are calculated immediately and banks can plan their cost management on a long-term basis. Since its launch in 2012, RippleNet has been continuously improving. And in the nearest future, we may expect more features added. As the company stated, it will soon reveal new improvements to RippleNet. One of the features would allow stablecoins to launch on the XRP ledger.

XRP Ledger

Recently, we have reported about the new functionality of the Ripple Ledger and provided the details Ripple CTO David Schwartz revealed. According to Schwartz, Ripple will allow third-party users to introduce new cryptocurrencies into the XRP ecosystem. Further, mentioned stablecoins, which is a major trend among institutions and even the Central Banks this year. As the trend with banks and governments creating own tokens and stablecoins gains traction, Ripple has started exploring this type of assets.

Schwarz stated:

“One of the features that I think is very exciting is a feature that would allow people to launch — well, stablecoins are the obvious use case, but it’s not just stablecoins — it’s essentially assets pegged to some external value.”

Notably, other blockchains have such a feature. For example, Tether runs stablecoin layers on multiple networks simultaneously. However, in comparison with other networks, asset-backed tokens on XRP would have “guaranteed” liquidity because of the ledger’s mechanics.

Ripple first mentioned stablecoins in October. At that time, Schwartz said:

The engineering team started to realize the properties of the algorithms we’d developed allowed us to do things, like a decentralized exchange.”

The company will announce more details about its plans later.

Ripple Faces Legal Problems

In addition to stablecoin feature, XRP Ledger will also have the ability to eliminate accounts of possible network spammers. This will add to the network’s advantages over other blockchains and make it different.

Recently, Ripple has also surprised the community with a new partnership. It signed a deal with one of the largest European remittance companies Azimo. The deal will provide Azimo with Ripple’s On-Demand Liquidity (ODL) to bring fast and cheap remittance capabilities into the Philippines.

However, on the back of the positive prospects, Ripple is facing some legal problems. Earlier, we wrote of how a federal judge from California has ruled against the request from Ripple to stop a class-action lawsuit that claims the company sold XRP to its customers as an unregistered security. Ripple had requested to stop the lawsuit back in December 2019 but failed to persuade a judge to dismiss it. The case, not finished by now, will go ahead, which is a big blow to the XRP and Ripple community at large. Earlier, investors complained they suffered losses as Ripple offered fake possibilities.

Altcoin News, Blockchain News, Cryptocurrency news, News, XRP
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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