Stably, a Web 3.0 startup based out of Seattle and creator of a TradFi and DeFi bridge, has decided to launch a multichain stablecoin on Ripple network’s XRP Ledger. The ticker symbol of the new, dollar-backed stablecoin is USDS. The launch of the new stablecoin was announced by Stably on 17 November 2022 via a press note.
Since Ripple is an SEC-qualified reserve custodian, the USDS is expected to maintain a 1:1 ratio with USD. The Stably USD is the first stablecoin backed by the US dollar to be introduced on XRP Ledger.
While the Stably USD is new to the Ripple network, it has already been issued across 11+ blockchains in the past. Some blockchains that are already familiar with the coin are Tezos, VeChain, Harmony, and Stellar.
The coin that has been launched in the midst of the FTX turmoil isn’t Stably’s first stablecoin rodeo. Back in 2018, the startup launched a coin of the same kind on Ethereum.
Additional details about USDS
Stably claims that in addition to being fully collateralized by actual USD reserves in a 1:1 ratio, USDS will be independently audited by a leading American auditor. The auditor will provide monthly certifications to show the state of Stably’s fiat reserves against its stablecoin.
So far, Stably has not officially disclosed the names of the custodian or the auditor.
Users can mint and redeem the stablecoin via Stably’s official web portal. Alternatively, they could use the Stably Ramp apps. These apps are integrated into the largest non-custodial wallet application on XRPL, the Xumm wallet. Institutional customers will be offered the additional option of opening a Stably Prime account to mint USDS.
The Stably–Ripple partnership
The Stably–Ripple partnership reflects their aspiration to launch a scalable and sustainable Web 3.0 platform.
Kory Hoang, CEO of Stably, said that it’s XRP Ledger’s top-notch technology that made them persist with Ripple’s state-of-the-art blockchain. The low transaction costs and strong institutional ties make XRP Ledger sits well with Stably’s long-term goals, according to Hoang.
Stably intends to simplify payments, create an infrastructure to bridge the gap between DeFi and TradFi, and onboard people to Web 3.0 using stablecoins, he explained.