- Ripple is extending its influence in African markets through partnerships with local fintechs, aiming to boost cross-border payment options for businesses.
- RLUSD, already backed by regulators in New York and surpassing $1B AUD in supply, is positioning itself as a credible alternative to dominant stablecoins like USDT and USDC.
- Beyond payments, Ripple has also applied RLUSD to climate risk insurance in Kenya, using smart contracts and satellite data to trigger rapid disaster relief payouts.
Ripple has continued its push toward accessible cross-border payments following partnerships with Chipper Cash, VALR and Yellow Card.
The introduction of RLUSD – an XRP Ledger-native stablecoin – has accelerated the project’s presence in Africa, with the latest initiative targeting businesses on the continent.
Released in 2024, RLUSD has shot to a supply of over $1 billion AUD and has emerged as a potential alternative to the big two (Tether USD and USDC). Key to RLUSD’s success is its compliance-heavy approach, with the coin being greenlit and regulated by the New York Financial Authority NYDFS.
Related: Stablecoins Set to Power a Tenth of Global Post-Trade Market Within Five Years, Citi Finds
RLUSD Ripples into African Institutions
The partnership intends to provide institutions operating within Africa a reputable and efficient way of conducting international transactions. RLUSD will be rolled out and made available over the coming months to African nations, supporting greater global liquidity and fast settlement times for businesses.
In a press release announcing Ripple’s collab, the team’s head of stablecoins spoke to the growing use of RLUSD among international institutions.
We’re seeing demand for RLUSD from our customers and other key institutional players globally and are excited to now begin distribution in Africa through our local partners.
Jack McDonald, Senior Vice President of Stablecoins at RippleThe addition of RLUSD to African nations isn’t Ripple’s first venture with the continent. A previous team-up with Chipper Cash brought Ripple Pay to the region, and Ripple has also established a humanitarian effort in Kenya in conjunction with Mercy Corps.
Specifically, RLUSD is being used to improve risk insurance within the country, automatically releasing funds to participants based on climate disasters such as drought or heavy rainfall. These payouts occur simultaneously, or even before, the environmental issues occur, thanks to smart contracts tied to satellite and rainfall readings.
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