Ripple Launches New Stablecoin

(Reuters) – Crypto firm Ripple launched a stablecoin pegged to the U.S. dollar on Tuesday, aiming to disrupt a market dominated by Tether and USD Coin.

This launch is a significant milestone for Ripple, following a major legal victory against the Securities and Exchange Commission (SEC) last year.

Ripple's new stablecoin, RLUSD, is entering a concentrated market where Tether and USD Coin account for almost 90% of total market capitalization, as reported by CoinGecko.

RLUSD will be available globally on several platforms, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.

Stablecoins are digital tokens designed to maintain a stable value and are backed by traditional currencies like the U.S. dollar or euro. They offer advantages for payments and converting crypto to fiat due to their resistance to the volatility seen in bitcoin and ether.

Each RLUSD token is fully backed by U.S. dollar deposits, government bonds, and cash equivalents, according to Ripple.

The advisory board for RLUSD includes Sheila Bair, former chair of the Federal Deposit Insurance Corp, along with Ripple co-founder Chris Larsen and David Puth, ex-CEO of CENTRE Consortium.

CENTRE previously oversaw USDC, a partnership between Coinbase and Circle, but was dissolved last year, leaving Circle in charge of USDC governance and issuance.