Cryptocurrency exchange Bitstamp has announced support for EUR-backed IOUs on the XRP Ledger. This implies that Bitstamp customers can now take advantage of XRP Ledger to transfer EUR across the network.
Speaking on expanded support on Twitter, Bitstamp wrote: “We’re expanding our IOU Services on XRPL. You can now use EUR-backed IOUs as your gateway to the XRP Ledger. Dip your toes into DeFi with cost-effective and fast transfers, increased transparency and zero transfer fees on all IOU transfers.”
As stated in its official blog post, from Jan. 26 to March 27, 2023, Bitstamp says it will be offering zero transfer fees on all IOU transfers.
XRPL-based wallet Xumm celebrated the new milestone reached by tweeting, “Another EUR issuer on the XRP Ledger. Congrats on the launch of Bitstamp. More stablecoins for more future retail adoption. The XRP Ledger as payment rails and XummWallet as app to interact with them.”
IOUs are based on XRP Ledger and are issued by Bitstamp in exchange for eligible assets such as EUR.
Utilizing a network of validating servers, XRP Ledger uses a distributed consensus ledger. Despite having its native token, it permits the creation of additional asset-backed tokens known as IOUs on the XRP Ledger. Bitstamp issues three asset-backed IOUs, BTC, USD and now EUR, which serve as an entry and exit point for XRP Ledger.
A simple definition of an IOU is a unique asset-backed token created on the XRP Ledger that is redeemable for the underlying asset, such as USD, EUR, gold or even crude oil.