%Cryptocurrency firm %Ripple (CRYPTO: $XRP) has officially launched its new stablecoin that’s pegged to the U.S. dollar.
With the stablecoin, Ripple aims to take on %Tether (CRYPTO: $TETHER) and USD Coin (USDC), which together account for nearly 90% of the stablecoin market.
Ripple’s stablecoin, called “RLUSD,” is now available on several crypto trading platforms, including Bitstamp, Bitso, and Independent Reserve.
Stablecoins are cryptocurrencies whose value is pegged to an underlying asset, typically the U.S. dollar or price of gold bullion. Ripple’s stablecoin is tied to the greenback.
Stablecoins are widely used to convert digital coins and tokens into traditional currencies and are praised for shielding investors from the often wild price fluctuations seen in other cryptos.
Ripple says that each of its RLUSD tokens is backed by U.S. dollar deposits, U.S. government bonds and cash equivalents.
The company, formerly known as Ripple Labs, has appointed Sheila Bair, former chair of U.S. banking regulator the Federal Deposit Insurance Corp., to its advisory board for RLUSD.
The board also includes Ripple co-founder and executive chairman Chris Larsen.
XRP, the cryptocurrency associated with Ripple, has gained 11% over the past year and currently trades at $0.54 U.S. per token.