Ripple CTO Reveals Major XRPL Feature Amid Stablecoin Excitement

Ripple’s Chief Technology Officer, David Schwartz, casts a spotlight on a crucial feature of the XRP Ledger (XRPL) known as auto-bridging. This comes at a time when excitement is building over Ripple’s new stablecoin, which is expected to bring more utility and liquidity to the XRPL.

While not new to the XRPL, auto-bridging is a unique feature on the DEX that uses XRP as the native currency to facilitate trades between any two assets on the ledger.

As the native currency on XRPL, XRP is inherently counterparty-free. Auto-bridging capitalizes on this by automatically using XRP as a bridge currency when determining the most efficient trading path between assets.

Ripple CTO has authored a blog to explain how the #XRPL feature of “auto-bridging” which helps to enable the efficient trading of #stablecoins on the XRPL – Read more from the detailed blog:https://t.co/q8nCYdpEGN

“One of the key use cases for auto-bridging is enabling…

— Antony Welfare (@AntonyWelfare) April 4, 2024

One of the primary applications for auto-bridging is the efficient trading of stablecoins on the XRPL. Many DeFi applications rely on stablecoins, which are designed to limit volatility by being tied to a stable asset such as the US dollar.

Auto-bridging works in tandem with the XRPL’s Automated Market Maker (AMM) function, which recently became live on the XRPL mainnet. When an AMM trade takes place on the XRPL, it can generate fresh trading offers that are compatible with the auto-bridging feature. This means that the auto-bridging feature can consider the newly created offers when processing trades.

In fantastic news for the cryptocurrency community, fintech behemoth Ripple will launch a USD-backed stablecoin pegged 1:1 to the US dollar.

Ripple’s stablecoin will be backed completely by US dollar deposits, U.S. government bonds, and cash equivalents, ensuring trust and stability.

Stablecoins serve as a pivotal entry point to DeFi, and introducing an enterprise-grade stablecoin to the XRP Ledger is expected to generate more use cases, liquidity, and opportunities for developers and users alike.

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