Ripple is gearing up to introduce its own USD-backed stablecoin in order to compete with established ones like USDT and USDC. The company sees Dubai’s accommodating regulatory environment as crucial to its growth and expansion in the Middle East.
During a recent conversation, Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, expressed the company’s plans to enter the stablecoin market. Merrick highlighted the growing demand for stablecoins and Ripple’s eagerness to make a significant impact in this sector. He specifically pointed to Dubai’s forward-thinking regulations as a key factor in Ripple’s decision to extend its operations in the Middle East and Africa.
In a tweet shared by Collin Brown on June 10, 2024, Merrick confirmed Ripple’s readiness to launch its stablecoin amidst ongoing uncertainties related to the SEC vs. XRP case, signaling an exciting development on the horizon.
Merrick praised Dubai’s regulatory framework as progressive, creating an ideal environment for Ripple’s continued growth. For the past four years, Ripple has been leveraging Dubai’s supportive stance on fintech to promote the adoption of crypto and blockchain technologies. The city’s regulatory policies have paved the way for numerous opportunities, making it a strategic location for Ripple’s new endeavors.
With the stablecoin market currently valued at $150 billion and projected to reach $2.8-$3 trillion by 2028, Merrick underscored the significance of compliant businesses in this expanding industry. Ripple is committed to adhering to regulations and ensuring security in its operations. The new stablecoin aims to meet the rising demand for reliable and efficient global payment solutions, particularly from financial institutions.
Monica Long, Ripple’s President, echoed Merrick’s sentiments, emphasizing the company’s long-standing commitment to trust and compliance. She highlighted the introduction of a USD-backed stablecoin as a response to customer needs and Ripple’s mission to improve global payment systems. According to Long, the stablecoin represents a natural progression in Ripple’s evolution, building upon its established cross-border payment network.
Ripple’s focus on Dubai is part of a broader strategy to expand its presence in regions with favorable regulatory environments. Dubai’s forward-thinking regulations and promising growth opportunities in fintech and blockchain sectors have solidified its position as a key location for Ripple. The recent Crypto Expo Dubai 2024 further showcased the city’s potential as a major player in the global cryptocurrency landscape.
Long also discussed the potential for XRP-spot ETFs, suggesting that such an offering would be a logical step forward given XRP’s regulatory clarity and strong market presence. Ripple’s strategic partnerships could further enhance XRP’s value, with the Russian President hinting at plans to incorporate XRP into an independent payment system for cross-border transactions. This development could significantly boost XRP’s market value and elevate Ripple’s standing in the global fintech industry.
While XRP has experienced a modest 0.52% increase in the last 24 hours, trading at $0.4958, its trading volume has slightly decreased by 0.65% to $802,083,030. Over the past week, XRP has shown minimal movement, with a 4.97% fluctuation in value, fluctuating between $0.4711 and $0.5322. Despite its current trading levels, XRP remains significantly below its all-time high of $3.29, noted on January 4, 2018, reflecting an 87.08% decrease from that peak and highlighting the considerable volatility and long-term downward trend in XRP’s valuation.