Crypto Journalist
Amin Ayan
Crypto Journalist
Amin Ayan
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Key Takeaways:
- Circle’s USDC is now live on the XRP Ledger, enabling cross-chain transfers via XRP’s auto-bridging feature.
- U.S. regulators are intensifying their focus on stablecoins as their role in global finance expands.
- Ripple aims to position XRP as a key liquidity bridge while debates grow over the future of dollar-pegged versus gold-backed stablecoins.
Circle’s USDC stablecoin has officially launched on the XRP Ledger (XRPL), expanding the reach of the dollar-pegged digital asset and enabling new cross-chain liquidity routes.
Ripple announced Thursday that users can now leverage XRP as a bridge currency to transfer USDC between decentralized exchanges via XRPL’s native auto-bridging functionality.
Markus Infanger, senior vice president at RippleX, described the move as a critical step toward bridging traditional finance with the crypto economy.
“Stablecoins are key entry points connecting traditional financial markets with the crypto space — essential for use cases focused on utility rather than speculation,” he stated.
Stablecoins Face Rising Scrutiny as U.S. Regulators Weigh Next Moves
The integration comes at a time when stablecoins are drawing heightened regulatory attention in the United States.
The asset class, which now boasts over $237 billion in market capitalization, plays an increasingly strategic role in global finance, with backing often tied to U.S. Treasury bills.
Issuers collect yield from these short-term government securities, making stablecoins a profitable and politically significant instrument.
Some U.S. officials see dollar-backed stablecoins as a tool to counter de-dollarization pressures, particularly as countries like China and Russia reduce exposure to U.S. debt.
As foreign governments sell off Treasuries, bond yields rise, increasing the cost of U.S. borrowing and amplifying the strain of maintaining the $36 trillion national debt.
At the March 7 White House Crypto Summit, Treasury Secretary Scott Bessent emphasized the importance of stablecoin development to uphold dollar dominance globally.
However, critics such as Max Keiser argue that dollar-pegged stablecoins are a temporary fix.
Keiser believes gold-backed stablecoins are poised to outperform due to gold’s superior stock-to-flow ratio, which guards against inflation and value erosion.
The addition of USDC to the XRPL ecosystem underscores Ripple’s ambitions to integrate stablecoin liquidity into its layer-1 infrastructure and further position XRP as a functional bridge asset in the broader decentralized finance landscape.
XRP Ledger Expands Stablecoin Offerings
In May, the XRP Ledger expanded its stablecoin offerings with the launch of two new region-specific assets, including EURØP, a MiCA-compliant euro stablecoin from Schuman Financial, and USDB, a dollar-pegged token issued by Brazil’s Braza Group.
EURØP, backed by euros and safeguarded by major institutions like Societe Generale, marks the first fully MiCA-compliant euro stablecoin on XRPL.
Meanwhile, Braza Group’s USDB stablecoin, backed by U.S. and Brazilian bonds, offers Brazilian users a secure digital asset for payments and hedging.
As reported, serial entrepreneur and investor Gary Cardone has launched a scathing attack on XRP, accusing the digital asset of aligning itself with centralized governments in a bid to stay relevant.
His remarks follow ongoing speculation that the European Central Bank (ECB) may integrate the XRP Ledger into its digital euro infrastructure.
While the ECB has not confirmed any formal partnership with Ripple or its XRP Ledger, rumors have circulated across crypto circles.
Cardone went further, likening XRP’s influence in finance to a new virus, calling it “COVID-19 Part Two in finance.”
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