CEO of Ripple Issuer, "Stablecoin Issuance in the Second Half of This Year"

by Kim Jinyeong

Published 05 Apr.2024 09:19(KST)

Cryptocurrency Ripple issuer Ripple Labs announced on the 4th (local time) that it plans to enter the stablecoin market in the second half of this year.

Brad Garlinghouse, CEO of Ripple Labs, said in an interview with US economic media CNBC on the same day, "Ripple's stablecoin, designed to maintain a value of 1 dollar, will begin trading by the end of this year." He added, "The stablecoin can be used on both the Ethereum and Ripple blockchains," and explained, "We have not yet decided on which exchanges to list it."

CEO of Ripple Issuer, "Stablecoin Issuance in the Second Half of This Year"

Stablecoins are cryptocurrency assets pegged to real assets such as the US dollar or euro to maintain a fixed value, developed to solve the high price volatility issues of existing cryptocurrencies like Bitcoin. The stablecoin market size is currently estimated at $153 billion (approximately 206 trillion KRW). USDT issued by Tether and USDC by Circle account for 90% of the entire market, while more than 100 other issuers compete for the remaining 10% market share.

CEO Garlinghouse emphasized, "We plan to announce our stablecoin holdings every month," and added, "We intend to transparently disclose even the partner bank information responsible for managing the company's assets." He also stated, "Currently, the leading stablecoins in the market have uncertainties regarding regulations," and emphasized, "Ripple Labs is a regulated entity holding licenses in New York, Ireland, and Singapore."

Meanwhile, Ripple Labs is currently engaged in a lawsuit with the US Securities and Exchange Commission (SEC) over whether Ripple is a security. In July last year, the New York District Court ruled that Ripple itself is not a security, but sales to institutional investors should be considered illegal securities sales. Previously, Ripple Labs sold Ripple worth approximately $728.9 million to hedge funds, and the SEC is reported to have requested the court to impose a $2 billion fine on Ripple Labs.