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    Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Breaking: Ripple Announces a Multichain Fiat-backed Stablecoin to Improve XRPโ€™s Liquidityย 

Ripple Labs, a leading real-time gross settlement company leveraging blockchain technology, has announced plans to launch a multichain stablecoin, which is pegged to the United States dollar at a ratio of 1:1. According to the announcement, the Ripple-backed stablecoin will be first be issued on the XRP Ledger using the XRPL native functionality and on the Ethereum network through an ERC-20 token standard.

Shortly, Ripple intends to expand to other blockchains, DeFi protocols, and applications to reach more users seamlessly. 

Read More : โ€˜XRP Unleashedโ€™ Trailer Releases Tomorrow: Hereโ€™s What to Expect!

What Rippleโ€™s New Stablecoin Mean

Ripple has grown to a major web3 company through strategic acquisitions in the past few years, despite the notable headwinds from the ongoing lawsuit filed by the U.S. SEC. The launch of a fiat-backed stablecoin will solidify Rippleโ€™s reputation as a powerhouse for interlinking traditional financial institutions and web3 space.

โ€œInstitutions entering this space are finding success by partnering with compliant, crypto-native players, and Rippleโ€™s track record and resiliency speak for itself as we launch new products and acquire companies through multiple market cycles,โ€ Brad Garlinghouse, Rippleโ€™s CEO, noted.ย 

The new Ripple-backed stablecoin comes after the XRPL network adopted a native Automated Market Maker (AMM) to improve XRPโ€™s liquidity. With the XRPL network already having a built-in DEX, the introduction of a reputable stablecoin will enhance the adoption of the companyโ€™s payment products.

Did You Know : New Altcoins Poised For 40x Gains In April

Impact on XRP Price Action

Following the announcement, which caught the attention of the entire crypto community, XRP price surged as much as 61 cents on Thursday during the early New York season. 

The large-cap altcoin, with a fully diluted valuation of about $60 billion, is on the cusp of a major bullish uproar. From a technical standpoint, XRP price against the US dollar is retesting the bullish breakout from a macro-falling logarithmic trend.

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