According to PANews, Ripple has announced plans to launch a dollar-backed stablecoin. The company has stated that the token is set to be issued 'later this year' and will be '100% backed by dollar deposits, short-term U.S. government bonds, and other cash equivalents'. The stablecoin will initially be deployed on Ripple's institution-centric XRP Ledger and the Ethereum blockchain, and will be based on the Ethereum's ERC-20 token standard. The company's move to issue a stablecoin is seen as a strategic step to enhance its financial services and increase its market presence. The stablecoin market has been growing rapidly, with many companies and institutions showing interest in the sector. Ripple's entry into this market could potentially increase competition and drive innovation in the sector.