Ripple unveils a new stablecoin
Ripple unveiled a stablecoin tied to the US dollar, hoping to disrupt the evolving digital market where the top two incumbents(Tether and USDC) control nearly 90% of the value.
The collaboration is a significant milestone for the popular crypto firm, coming more than a year after a historic victory over the Securities and Exchange Commission last year.
However, it will face an uphill battle in a confined market where the two largest players – Tether and USD Coin (USDC) – account for roughly 90% of total market capitalization.
Ripple announced that the stablecoin RLUSD will be available globally on digital platforms, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish.
Stablecoins are digital tokens that have a steady value. They may be better suited for payments and converting crypto tokens into regular currencies because they are immune to the extreme price volatility observed in Bitcoin and ether.
Ripple stated that each RLUSD token is 100% guaranteed by US dollar deposits, government bonds, and cash equivalents.The business has nominated Sheila Bair, former head of the Federal Deposit Insurance Corporation, to the RLUSD advisory board.
Previously, Bair served as head of the board of Fannie Mae, a government-backed mortgage finance corporation, and assistant secretary for financial institutions at the US Treasury Department.
Chris Larsen, Ripple’s co-founder and executive chair, will join the board, as will David Puth, former CEO of CENTRE Consortium.
CENTRE, which formerly supervised USDC, was a collaboration between cryptocurrency exchange Coinbase, and stablecoin network Circle. It was shut down last year, and Circle now has complete control over USDC issuance and governance.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals