The US dollar stablecoin market has long been dominated by Tether (USDT) and Circle (USDC). Together these stablecoins have a market cap of around $140 billion or so.
While others have tried, notably PayPal last year, there is no other stablecoin with a market cap of more than $3 billion.
Into this environment comes Ripple, with the announcement today of its own dollar-denominated stablecoin that will be distributed on Ethereum and the XRP blockchain it created.
The company decided to launch its own stablecoin last year as the result of the de-pegging of both USDT and USDC briefly during some market turmoil. The Ripple stablecoin will be backed 1-to-1 by “U.S. dollar deposits, U.S. government bonds and cash equivalents.”
The company will also conduct monthly attestation reports to demonstrate transparency.
PayPal has struggled to get any traction with its stablecoin, it has a market cap of just $190 million, according to CoinMarketCap. Whether Ripple can do any better remains to be seen.
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