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News/Ripple, PayPal and Japanese Banks’ Ambition in Stablecoin Advancements

Ripple, PayPal and Japanese Banks’ Ambition in Stablecoin Advancements

Van Thanh Le

Apr 5 2024

3 months ago3 minutes read
Cubic Robot Embodies Ripple's Stablecoin Ambition

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Ripple's Stablecoin Ambition: Navigating the Digital Asset Landscape

Ripple, the fintech company known for its blockchain-based payment solutions, has unveiled an ambitious plan to launch a US dollar-pegged stablecoin. This initiative aims to address the surging demand for stablecoin payouts, particularly in emerging markets. The proposed stablecoin, backed by cash, short-term US government treasuries, and other cash equivalents, is designed to serve as a critical entry point for institutional and decentralized finance (DeFi) use cases across multiple ecosystems.

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Ripple's decision to issue the stablecoin on both the XRP Ledger and Ethereum is a strategic move, as it seeks to drive greater adoption and development, ultimately contributing to a vibrant ecosystem. Ripple Labs' president, Monica Long, emphasizes the importance of this cross-platform approach, highlighting the company's commitment to fostering a collaborative and inclusive digital asset landscape.

Ripple's CEO, Brad Garlinghouse, underscores the significance of this initiative, viewing it as a bridge between the digital assets industry and traditional finance. Garlinghouse argues that Ripple's extensive experience, regulatory footprint, strong balance sheet, and near-global payout coverage uniquely position the company to lead this integration.

However, Ripple's announcement has sparked a debate within the crypto community. Bill Morgan, a prominent attorney and key figure in the digital asset world, questions the necessity of combining the stablecoin with XRP in crypto-enabled payments, raising concerns about the strategic implications for the use of XRP as a bridge in payments.

The controversy intensifies as Coindesk publishes an article portraying Ripple's move into the stablecoin market as a desperate pivot away from XRP. Garlinghouse forcefully defends Ripple's strategy, rejecting the notion of the company as a struggling entity and highlighting its ongoing efforts to explore new paths and opportunities in the digital asset space.

Despite the criticisms, Ripple's stablecoin initiative is widely seen as a testament to the company's determination to drive innovation and address the growing demand for stable digital assets. The debate and discussions surrounding this move reflect the divided opinions within the crypto community, underscoring the evolving and complex nature of the digital asset landscape.

Notably, the stablecoin market is projected to experience exponential growth, from its current valuation of around $150 billion to over $2.8 trillion by 2028. This projected expansion underscores the significant potential for Ripple's stablecoin initiative to contribute to the ongoing transformation of digital assets and finance.

Pioneering Stablecoin Advancements: PayPal and Japanese Banks Lead the Charge

PayPal, the Silicon Valley-based payments giant, has integrated its USD-pegged stablecoin, PYUSD, with its Xoom cross-border platform. This strategic integration allows U.S. clients to send international money transfers without transaction fees to approximately 160 countries, offering a more cost-effective solution for global remittances.

PayPal's Senior Vice President for Blockchain and Crypto, Fernandez da Ponte, emphasizes that this initiative underscores the company's commitment to providing secure, lower-cost options for international money transfers, further enhancing the utility of digital currencies in everyday transactions. 

Notably, according to a World Bank report cited by PayPal, the global average cost of sending $200 is just over 6%. By enabling fee-free transactions for money transfers funded with PYUSD, PayPal aims to significantly lower the financial barrier for cross-border payments, providing a tangible benefit to its users.

Visualizing the Explosive Growth of the Stablecoin Market.webp

Across the globe, Sony Bank in Japan has embarked on a stablecoin experiment, with the goal of developing a yen-pegged stablecoin. Leveraging the Polygon blockchain for its scalability and low transaction costs, this initiative explores the use of stablecoins to streamline payments within the Sony Group's expansive ecosystem, encompassing gaming, sports, and other intellectual properties.

Sony's foray into stablecoins is designed to enhance user experiences by facilitating seamless digital asset transactions on its platforms. The project is supported by a partnership with SettleMint, a Belgian blockchain development firm, ensuring technical excellence in the execution of this innovative endeavor.

Alongside the stablecoin development, Sony Bank is set to launch the "Sony Bank Connect" app, catering to a user-friendly environment for digital asset management, including non-fungible tokens (NFTs). This move signals a broader strategy to integrate blockchain technology into Sony's diverse range of services and platforms.

The stablecoin sector in Japan is witnessing increased activity, with several banks conducting trials on stablecoin-based electronic money transfers. Japan's progressive regulatory framework, which includes the legalization of fiat-pegged stablecoins and permission for licensed financial institutions to issue them, has created a conducive environment for stablecoin innovation.

The collaborative efforts between Sony and Startale Labs, including a significant investment and a shared vision for a global web3 infrastructure, underscore the strategic importance of blockchain and stablecoin technologies in shaping the future of digital transactions and entertainment experiences.


The stablecoin market is booming, projected to reach $2.8 trillion by 2028. Companies like Ripple, PayPal, and Sony Bank are all launching their own stablecoins, aiming to revolutionize cross-border payments, lower remittance fees, and enhance user experiences within their ecosystems. This trend suggests a future where stablecoins play a major role in digital finance and everyday transactions.


1. What is Ripple's strategy for its stablecoin?

Ripple plans to issue a US dollar-backed stablecoin on both XRP Ledger and Ethereum to maximize adoption and bridge the gap between traditional finance and digital assets. This has sparked debate within the crypto community, with some questioning its necessity for XRP.

2. How is PayPal using its stablecoin?

PayPal integrated its PYUSD stablecoin with its Xoom platform, enabling fee-free international money transfers for US customers. This initiative aims to reduce remittance costs and leverage the advantages of digital currencies for global transactions.

3. What is Sony Bank's stablecoin project about?

Sony Bank is developing a yen-pegged stablecoin on Polygon to streamline payments within its vast ecosystem. This project, partnered with SettleMint, also involves the launch of a user-friendly app for managing digital assets, reflecting Sony's broader strategy to embrace blockchain technology.

4. Why is Japan a leader in stablecoin innovation?

Japan's legal framework allows licensed institutions to issue fiat-backed stablecoins, fostering a favorable environment for development. This, along with Sony Bank's experiment and other bank trials, positions Japan at the forefront of stablecoin innovation.

This article has been refined and enhanced by ChatGPT.

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