Payments firm Ripple has expanded its regulated stablecoin Ripple USD (RLUSD) into African markets through strategic partnerships with Chipper Cash, VALR and Yellow Card. Launched in late 2024 and regulated by the New York Department of Financial Services, RLUSD has accumulated over $700 million in circulating supply across Ethereum and the XRP Ledger. Institutional off-chain liquidity and on-chain settlement options provide corporate treasury and remittance use cases, addressing liquidity constraints in regions with limited banking infrastructure.
Chipper Cash, a leading cross-border payments platform in Africa, will integrate RLUSD into its corporate treasury services, enabling businesses to hold digital USD reserves on-chain and settle transactions instantly. VALR and Yellow Card will facilitate on-ramps, providing regulated fiat corridors for institutional clients seeking digital dollar exposure. These alliances aim to offer a compliant alternative to unregulated stablecoins, reducing counterparty risk and enhancing transparency through on-chain auditability.
In parallel, Mercy Corps Ventures has initiated pilot programs in Kenya using RLUSD to underwrite climate risk insurance. One trial employs satellite-based drought indices, automatically releasing RLUSD payouts when predefined aridity thresholds are breached. A second program covers excess rainfall events, with smart contracts triggering payments to insured communities based on rainfall measurements. These initiatives seek to improve resilience against extreme weather by offering rapid, trustless settlement mechanisms compared to traditional insurance products.
The Africa rollout underscores the growing importance of stablecoins in emerging economies, where volatile local currencies and fragmented banking systems hamper trade and financial inclusion. Digital dollars on blockchain rails can lower transaction costs, accelerate settlement times, and expand access to financial services for unbanked and underbanked populations. Regulatory clarity for RLUSD enhances institutional confidence, positioning the token as a cornerstone for on-chain liquidity solutions.
Looking ahead, Ripple plans to deepen local partnerships, explore additional use cases in trade finance and asset tokenization, and collaborate with regulators to develop robust compliance frameworks. The success of the Africa program will be closely watched as a bellwether for stablecoin adoption in frontier markets, with potential to inform global regulatory approaches and institutional digital asset strategies.
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