Ripple Labs, a San Francisco-based cryptocurrency payments firm, announced Thursday its plans to launch a new stablecoin pegged to the U.S. dollar.

With the announcement, Ripple steps into the competitive arena dominated by the likes of Tether and Circle.

The yet-to-be-named stablecoin will be backed by a mix of U.S. dollar deposits, short-term government securities, and other cash equivalents, with Ripple committing to monthly attestations of its reserve holdings.

This move aims to capitalize on established infrastructure, including the XRP Ledger and Ethereum blockchain, to make a mark in the rapidly expanding stablecoin market, David Schwartz, the chief technology officer of Ripple reportedly told Cointelegraph in a recent interview.