The cross-border payments company Ripple has announced its entry into the stablecoin market with a new issue that promises to be 100% pegged to reserves of short-term securities and other cash equivalent investments, i.e. equivalent to cash.
The move represents a direct challenge to industry giants such as Tether and USDC, in a market that currently exceeds $150 billion and could reach $2.8 trillion by 2028, according to Ripple estimates.

Stablecoins are cryptocurrencies designed to maintain a stable value against another store of value, such as the US dollar. This makes them an attractive option for investors looking to protect themselves from the volatility typical of cryptocurrencies.
The stablecoin market has been constantly growing in recent years and its adoption is increasing in numerous sectors, from cross-border payments to DeFi or Gaming.

The Ripple stablecoin will be fully backed by reserves of short-dated securities issued by governments and highly reliable companies. This type of reserve aims to ensure the stability of the stablecoin's price, which should remain pegged to the US dollar (USD) with minimal volatility. Ripple also announced that it will use the returns from these reserves to support the XRP ecosystem and to finance new initiatives.

In conclusion, Ripple's entry into the stablecoin market is an important move that could have a significant impact on the cryptocurrency industry, offering a new, more transparent and reliable alternative to investors.