Palau's Ministry of Finance announced the successful completion of the first phase of its Palau Stablecoin (PSC) Program.

The pilot, involving Ripple and its XRP Ledger platform, included 168 volunteers who used the PSC for retail purchases over three months, highlighting positive feedback from users and retailers.

Transactions were made via phone and QR codes or manual wallet address inputs, with only retailers able to convert PSC back to U.S. dollars, Palau's legal tender.

The PSC, fully backed by $20,000 in an FDIC-insured U.S. bank, is expected to reduce transaction fees, lower carbon footprint, and enhance financial inclusion across Palau.