Ripple Pushes for Cross-Border Adoption Amid Skepticism from Banks and Critics

Ripple's On-Demand Liquidity (ODL) and RLUSD stablecoin are gaining traction as banks remain skeptical of XRP-based rails. Ripple emphasizes its licensing efforts and enterprise partnerships to address regulatory and integration objections. However, the debate over the future of cross-border payments is intensifying, with some banks prioritizing internal settlement systems or stablecoin solutions. Ripple's CTO, David Schwartz, has also criticized Litecoin's Proof-of-Work (PoW) consensus model, labeling it unsustainable and inefficient.

Ripple, a global leader in digital asset infrastructure, has announced a strategic expansion of its RLUSD stablecoin in Africa, targeting institutional users and bolstering its On-Demand Liquidity (ODL) solutions. This move comes amidst increasing skepticism from banks regarding XRP-based rails and a growing debate over the future of cross-border payments.

Ripple’s RLUSD stablecoin, which is backed by a trust company based in New York and regulated by the Department of Financial Services, has gained significant traction in Africa. The stablecoin supports cross-border payments, treasury operations, and climate resilience programs. Ripple’s strategic partnerships with Chipper Cash, VALR, and Yellow Card are facilitating the adoption of RLUSD in key African markets [1].

The RLUSD stablecoin is designed to bridge the gap between traditional finance and blockchain innovation. It offers instant settlement, liquidity management, and DeFi integration, enabling companies to effectively regulate transactions and tokenized real-world assets without violating regulatory obligations. Additionally, Ripple is implementing pilot climate resilience programs in Kenya using RLUSD to automate payments via smart contracts when satellite data identifies extreme weather conditions [1].

Ripple’s decision to enter Africa and use RLUSD as a central element underscores the continent’s readiness for a digital financial revolution. The strategic partnerships, regulatory compliance, and entry of RLUSD in key African markets set the stage for additional financial inclusion and blockchain adoption.

In parallel, Ripple is emphasizing its licensing efforts and enterprise partnerships to address regulatory and integration objections. The company is also exploring stablecoin solutions to compete with internal settlement systems favored by some banks. Ripple's CTO, David Schwartz, has criticized Litecoin's Proof-of-Work (PoW) consensus model, labeling it unsustainable and inefficient [2].

Ripple’s partnership with Thunes, a leading provider of digital asset infrastructure for financial institutions, is further enhancing its global reach. The expanded partnership aims to improve the customer payout experience, streamline global money movement, and broaden payout reach across key markets. By leveraging Thunes' Direct Global Network with Ripple's blockchain-powered payments solutions, the two companies are driving more efficient and accessible cross-border payments for financial institutions and businesses worldwide [2].

The arrival of RLUSD and the expanded partnership with Thunes marks a significant step toward modernizing Africa’s financial infrastructure and creating new opportunities for businesses and individuals in a rapidly evolving market. As the debate over the future of cross-border payments intensifies, Ripple’s strategic moves position it as a key player in the digital financial ecosystem.

References:
[1] https://36crypto.com/ripple-expands-rlusd-stablecoin-in-africa-offering-regulated-digital-dollar-for-institutional-use/
[2] https://www.morningstar.com/news/pr-newswire/20250902ln62789/thunes-and-ripple-expand-global-partnership-to-transform-cross-border-payments