During the XRP conference in Las Vegas, Ripple CTO David Schwartz caught the attention of the crypto community by hinting that the company's stablecoin will launch in June.
The stablecoins, which will be backed by US dollar deposits, government bonds, and cash equivalents, are intended to provide stability and security and will be pegged to the US dollar at a 1:1 ratio.
In addition, stablecoins offer instant payment processing, price stability through backing by paper currency reserves or other assets, and the ability to conduct private transactions, according to Ripple.
The company estimates that the market value of stablecoins will reach $3 trillion by 2028 as the crypto community's need for fast and secure solutions grows rapidly.
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This initiative is in line with Ripple's desire to unite traditional financial systems with the crypto industry, seeing its stablecoin as a new opportunity in this direction, CoinGape reported.
Recall that the US Securities and Exchange Commission (SEC) previously claimed that Ripple's alleged stablecoin would be an "unregistered crypto asset." However, the company's lawyers denied those claims, citing compliance with international jurisdictions.
More information about the stablecoin is expected to be revealed at the XRPL Apex event in Amsterdam, which will take place in the middle of next month. In addition, the stablecoin is expected to bring together the best of the XRP Ledger to work in decentralized exchanges and automated market making.
Overall, Ripple's predictions for the stablecoin market are in line with the general trend in the market, with stablecoins playing an important role as a bridge between traditional finance and digital assets.
At the time of writing, XRP has a price of $0.5212 and a market capitalization of $28.8 billion.