The move will pit Ripple against stablecoin giants Tether, which is behind the largest stablecoin UDST, and Circle, the issuer of USDC.
The crypto firm said its reserves would be accounted for in publicly available monthly attestation reports. It did not say which firm will audit.Ripple is first launching its stablecoin in the U.S., but didn't rule out offering additional regional products in non-U.S. markets, like Europe and Asia. Some critics dispute the source of Tether's reserves, and have doubts about whether company is sufficiently capitalized to survive a"bank run."
Tether is registered with FinCEN, the U.S. financial crimes watchdog, which is not the same as being regulated. The business is required to submit suspicious transaction reports and reports for deals totalling more than $10,000.A Ripple stablecoin would also serve a purpose the crypto giant touts as part of its On-Demand Liquidity product, which aims to settle transactions rapidly between banks and other financial firms using the XRP token as a"bridge" currency.