Ripple Expands $700M RLUSD Stablecoin to Africa and Tests Weather Insurance
Ripple is expanding its U.S. dollar-backed stablecoin, Ripple USD (RLUSD), to institutions in Africa through partnerships with Chipper Cash, VALR, and Yellow Card distributors. Key points include:
- RLUSD aims to facilitate cross-border payments, liquidity, and on-chain settlement for businesses.
- The stablecoin, launched in late 2024, has a supply exceeding $700 million on Ethereum and the XRP Ledger.
- It can be utilized for treasury operations, remittances, and as collateral for trading tokenized assets.
- Stablecoins are becoming a preferred alternative to traditional payment methods in emerging markets, addressing challenges faced by institutional users in accessing stable liquidity.
- Mercy Corps Ventures is testing RLUSD for climate risk insurance initiatives in Kenya, utilizing satellite data for automatic fund releases during droughts and extreme weather events.