Users Can Now Trade USDT and USDC on Ripple’s XRPL DEX.
Ripple’s XRP Ledger (XRPL) decentralized exchange now offers trading support for two more stablecoins, Tether (USDT) and USD Coin (USDC) via the GateHub gateway.
Following the support of USDT and USDC, XRPL DEX users can now exchange the stablecoins for Ripple’s native cryptocurrency, XRP.
In a bid to celebrate the development, GateHub noted that users will not be required to pay any fee for the newly listed stablecoins while trading for the next 90 days.
XRPL DEX’s Features Makes it Suitable for Stablecoins
Interestingly, the XRPL DEX could gradually become a home for stablecoins in the near future.
Aside from USDC and USDT, which are pegged to the United States Dollars, plans are on the way to adding the first euro-backed stablecoin to the decentralized exchange.
Commenting on the addition of USDT and USDC to the platform, David Schwartz, Ripple CTO noted that the XRPL DEX’s core features have made it the ideal destination for stablecoin issuers.
According to Schwartz, in order to get a stablecoin listed on the platform, the issuer only needs to create an issuing account and set configuration options for the new account and the stable digital currency.
Schwartz, who was one of the original architects of the XRP Ledger, noted that the solution was originally built for payments, allowing counterparties like the government, central banks, and stablecoin issuers the ability to settle transactions at a cheaper rate.
“Such counterparties are why one universally agreed-upon stablecoin is highly unlikely. There are a few reasons for this, but mainly because stablecoins have an issuer as a counterpart that does not allow them to interoperate across payment networks and jurisdictions,” Schwartz said in a Twitter post today.
XRPL DEX now supports USDC, USDT via @GateHub, and the first euro-backed stablecoin is soon to come via @stasisnet. Let’s check out the benefits of support offered for stablecoins on the #XRPLedger: 1/6 https://t.co/EtkvAGM8dy
— 𝙳𝚊𝚟𝚒𝚍 𝚂𝚌𝚑𝚠𝚊𝚛𝚝𝚣 (@JoelKatz) March 16, 2022
However, the Ripple CTO said counterparty-free digital currencies like the XRP and Bitcoin (BTC) provide a solution to this problem, as this asset class acts as a bridge for instant payments without the need of a counterparty.