Ripple, the payment processor, is pushing its market share into a more “stable place.”
With the likes of Tether and USDCoin now established, Ripple makes an ambitious stride to offer its own stablecoin. The move might seem uncalculated, but there’s a reasonable basis behind it. Even the Financial Times has picked up on the story.
Our premise is simple.
Though stablecoins aren’t new, the developers behind Ripple have something that other stablecoins don’t. They have an architecture that completes transactions at record speeds.
This ultimately makes Ripple scalable and poised to thrive.
Now who finds this to be advantageous other than the leading banks of Wall Street?
Not Just Stability but Accessibility
Ripple Labs, the agency behind the Ripple token, is pursuing stablecoins because it believes they’re a safe option for financial institutions. With crypto’s rise within the ranks of Wall Street’s largest firms, Ripple’s network already has the ideal tech to use.
Essentially, the securities market is now accessible to crypto users and vice versa.
What that means is there’s a growing market that will require investors to either use crypto to buy securities or for securities to convert into crypto. The participants in these markets are institutional investors and those who solely deal with cryptocurrencies.
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What Is a “Securities Stablecoin” For?
Image trading securities like stocks or bonds but through a blockchain.
This won’t remove the broker as a middle man, but it will be a start.
The promises of blockchain have already been tested through what are now typical crypto exchanges. The same concept will apply, but instead of trading BTC or Ether, investors will have access to Apple (APPL) or Nike (NKE) as crypto.
In the same account, traders and firms will be able to seamlessly convert their holdings and place them into a safe ETF if they choose. What Ripple proposes is a niche market that, if not capable of rebranding Ripple, will definitely give it a marketable edge.
In its own words, this move will allow a bridge to be formed between “traditional capital and cryptocurrency markets.” This ultimately means that crypto is not just being adopted by the gatekeepers. Crypto is also being trusted.
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