Ripple Labs announces its entry into the stablecoin market with an asset aimed to rival established giants Tether (CRYPTO:USDT) and USD Coin (CRYPTO:USDC), focusing on enterprise solutions and transparency in reserves.

The forthcoming stablecoin from Ripple will be pegged 1:1 with the US dollar, with its reserves comprising US dollar deposits, short-term US government treasuries, and other cash equivalents, underscoring a commitment to transparency and compliance.

With a regulation-first strategy, Ripple underscores its readiness for institutional adoption, citing its BitLicense from New York and additional licenses from Singapore and Ireland as keystones of its compliant framework.

The stablecoin will initially be hosted on the XRP Ledger (CRYPTO:XRP) and plans include expansion to the Ethereum (CRYPTO:ETH) blockchain and beyond, emphasising multi-blockchain support to further its decentralisation goals.

Ripple's foray into the stablecoin sector could influence XRP's market dynamics, presenting a new layer of competition within its ecosystem that may impact demand and price, although initial reactions hint at increased investor confidence