Ripple takes the leap: New Stablecoin RLUSD in the market's sights

The crypto company Ripple caused a stir on Tuesday with the introduction of a new stablecoin pegged to the US dollar. With this bold move, Ripple is entering a terrain currently dominated by Tether and USD Coin (USDC) – the two heavyweights that hold nearly 90% of the market share in this segment. For Ripple, the launch of RLUSD is a significant event, occurring more than a year after a landmark victory over the U.S. Securities and Exchange Commission. Despite this triumph, Ripple faces a challenging task: to penetrate a highly concentrated market and compete against established players. The new stablecoin RLUSD will be available globally on numerous platforms, including Uphold, Bitstamp, and Bullish. Stablecoins like RLUSD are digital tokens that maintain their value by being backed by traditional currencies such as the US dollar. They offer a stable alternative to more volatile cryptocurrencies like Bitcoin and Ether, particularly when it comes to payments and exchanges into traditional currencies. As Ripple emphasizes, each RLUSD token is fully backed by deposits in US dollars, US Treasury bonds, and similar liquid assets. Additionally, Sheila Bair, former chair of the U.S. Federal Deposit Insurance Corp, will join the advisory board for RLUSD. The board also includes Chris Larsen, co-founder and chairman of Ripple, as well as David Puth, former CEO of the CENTRE Consortium. The CENTRE Consortium, which previously oversaw USDC, was a joint project of the crypto exchange Coinbase and the stablecoin network Circle, but it was dissolved last year. Since then, Circle has taken full control over the issuance and management of USDC.