Ripple, the payment-focused cryptocurrency company, has announced the extension of its U.S. dollar-pegged stablecoin, RLUSD, to corporate clients in Africa. This initiative comes in partnership with Chipper Cash, VALR, and Yellow Card.
The objective is to enable businesses on the continent to leverage a stable digital dollar for facilitating cross-border payments and liquidity.
Key Points:
- Partnerships: Ripple is collaborating with local distributors such as Chipper Cash, VALR, and Yellow Card to distribute RLUSD in Africa.
- Growth in Stablecoins: Stablecoins are increasingly becoming a favored option for international payments, especially in regions with limited access to reliable banking services.
- Additional Use Case: Mercy Corps is also trialing RLUSD for blockchain-based weather insurance programs.
RLUSD was launched in late 2024 and is regulated by a New York trust company. It has exceeded $700 million in supply on the Ethereum blockchain as well as the XRP Ledger. The stablecoin aims to assist in various financial operations, including treasury functions and trading collateral.
As traditional payment channels face challenges in emerging markets, stablecoins like RLUSD are gaining traction as efficient and cost-effective alternatives. Particularly in Africa, where digital currencies like USDT are utilized for savings and transfers, RLUSD offers a regulated and institutional-focused solution.
In conjunction, Mercy Corps Ventures is piloting RLUSD in two climate insurance projects in Kenya, where automatic fund releases occur during drought conditions directed by satellite data.
