Cryptocurrency firm Ripple has introduced a stablecoin called RLUSD, pegged to the US dollar, in a strategic move to gain ground in a market dominated by Tether and USD Coin (USDC). These two stablecoins currently account for almost 90% of the total market value. The launch of RLUSD marks a significant milestone for Ripple, following its legal victory over the Securities and Exchange Commission (SEC) last year.

Ripple's RLUSD will be available globally on a variety of platforms, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish. Stablecoins, like RLUSD, are designed to maintain a stable value and are backed by traditional currencies, making them a more viable option for payments and for converting crypto tokens into conventional currencies.

Ripple ensures that each RLUSD token is fully backed by US dollar deposits, government bonds, and cash equivalents.

In a strategic move, Ripple has appointed Sheila Bair, former chair of the Federal Deposit Insurance Corporation (FDIC), as a member of the RLUSD advisory board. Bair’s vast experience includes serving as chair of Fannie Mae and assistant secretary for financial institutions at the U.S. Treasury Department. The board also features Chris Larsen, co-founder and executive chairman of Ripple, and David Puth, former CEO of the CENTRE Consortium.

CENTRE, which was previously responsible for overseeing USDC and operated as a joint venture between Coinbase (NASDAQ:COIN) and Circle, was dismantled last year, with Circle assuming full responsibility for USDC issuance and governance.