The XRP Ledger (XRPL) has officially integrated Circle’s USDC stablecoin, expanding the reach of the dollar-pegged asset. Ripple confirmed the launch, stating that users can now leverage XRP as a bridge currency for transferring stablecoins between decentralized exchanges.
This update enables a new level of cross-chain functionality on XRPL through its auto-bridging feature. It also supports increased utility for XRP within the broader digital payments ecosystem.
Ripple Highlights Stablecoin Utility Beyond Speculation
Markus Infanger, Senior Vice President at RippleX, emphasized the practical role of stablecoins in linking traditional finance with blockchain systems. He noted that stablecoins are vital for use cases that go beyond trading and price speculation.
USDC is overcollateralized and is backed by short-term U.S. Treasury securities. This makes its dollar peg stable and provides a haven to institutional and retail users who want stability in the crypto market.
Also Read: Crypto Bloodbath: Bitcoin, Ethereum, and XRP Tumble as Altcoins Explode
Ripple and SEC File Joint Motion Over Escrowed Funds
Alongside the rollout of USDC, Ripple is making progress in its ongoing legal battle with the U.S. Securities and Exchange Commission. In a joint motion filed in Manhattan District Court, both parties have requested the dissolution of an existing injunction tied to the case.
As reported by 36crypto, the filing proposes that part of the $125 million currently held in escrow be partially paid to the SEC, with the rest returned to Ripple. Specifically, the proposal outlines a $50 million payment to the SEC, while Ripple would recover the remaining $75 million.
This motion marks a significant step toward resolving the long-running dispute and avoiding prolonged legal proceedings. It signals a willingness from both parties to bring closure to a case that has had a major impact on XRP’s market performance and regulatory standing.
Stablecoins Attract Government Attention as Market Cap Surges
With the stablecoin sector now valued at over $237 billion, U.S. lawmakers are placing greater focus on regulatory frameworks. The Treasury Department sees stablecoins as tools to support global dollar usage amid rising economic pressure.
The 10-year U.S. Treasury bond yield has remained above 4.3 percent as increased foreign sell-offs of U.S. debt raise government borrowing costs and worsen the national debt burden.
Recently, Treasury Secretary Scott Bessent affirmed that the creation of stablecoins would be accelerated in an attempt to maintain the dollar’s global relevance. This follows the increasing presence of blockchain-based assets in the financial infrastructure of the future.
Nonetheless, despite the prevailing controversies, implementing USDC on XRPL could make Ripple even stronger in the market. It also serves the more aggressive objective of promoting stablecoin adoption against growing regulatory scrutiny.
Also Read: New Joint Request in Ripple vs. SEC Case Signals Potential End to Battle
