Tembo’s RLUSD Move Signals Shift in Global Energy Finance

VivoPower International, a provider of energy solutions including solar and battery technology, has announced plans to enhance cross-border transaction efficiency for its subsidiary, Tembo e-LV B.V., by integrating Ripple’s RLUSD stablecoin. The move is part of a broader strategy to streamline financial operations as Tembo prepares for a merger with the SPAC Cactus Acquisition Corp 1 Limited, which values the company at an equity valuation of $838 million. The deal, announced in August, saw Energi Holdings acquire a 51% stake in Tembo under a private investment in public equity (PIPE) transaction, with a total enterprise valuation of $200 million for the subsidiary. VivoPower will retain a significant share in Tembo following the transaction, which is currently undergoing SEC registration via Form F-4. The company has also begun assembling a dedicated board of directors for the subsidiary ahead of its anticipated public listing.

Ripple’s RLUSD stablecoin, launched in late 2024, is a USD-backed digital asset licensed by the New York Department of Financial Services and holds a market capitalization of over $700 million. Engineered for enterprise use, RLUSD is designed to support international payments, liquidity for remittances and treasury functions, and integration with DeFi protocols. The stablecoin has recently expanded into African markets through partnerships with Chipper Cash, VALR, and Yellow Card, where it is being utilized in innovative financial applications such as weather-related insurance pilots in Kenya. These initiatives leverage smart contracts to trigger drought or rainfall-based payouts for local farmers, enhancing financial inclusion and risk management for vulnerable communities.

In parallel, Ripple has introduced RLUSD into Japan in collaboration with SBI Holdings, with plans for a first-quarter 2026 launch. The company has integrated RLUSD into its cross-border payments solution, broadening the range of stablecoins available to customers in Africa and globally. Ripple SVP of Stablecoins Jack McDonald emphasized the stablecoin’s role in bridging fiat and crypto ecosystems, stating that demand from institutional players and enterprises has been strong. With a current price of $1.00 and a circulating supply of 710 million units, RLUSD has maintained a relatively stable value since its launch, experiencing a minor 0.26% decline in price over the past year.

The adoption of RLUSD by companies such as VivoPower highlights the growing utility of stablecoins in facilitating efficient and cost-effective cross-border transactions. For Tembo, the integration of RLUSD is expected to reduce transaction friction and enhance liquidity, particularly as the company scales its operations across international markets. This aligns with broader trends in the fintech sector, where stablecoins are increasingly being leveraged to streamline remittance flows and support financial innovation in emerging markets. Given RLUSD’s regulatory compliance and widespread institutional adoption, it represents a strategic asset for companies seeking to optimize their global financial infrastructure.

As Tembo moves closer to its public listing, the use of RLUSD is poised to play a crucial role in the company’s operational strategy. The stablecoin’s availability on major platforms such as Bitstamp, Kraken, and Gemini further supports its viability as a tool for cross-border efficiency. With Ripple continuing to expand RLUSD’s reach through strategic partnerships and regulatory compliance, its integration into VivoPower’s business model reflects a forward-looking approach to digital finance. The collaboration underscores the growing importance of blockchain-based solutions in addressing the inefficiencies of traditional cross-border payment systems.

Source:

[1] Energi Holdings to Acquire a 51% Stake in VivoPower's Subsidiary Tembo e-LV (https://finance.yahoo.com/news/energi-holdings-acquire-51-stake-135655365.html)

[2] Ripple's RLUSD stablecoin enters African market (https://finance.yahoo.com/news/ripple-rlusd-stablecoin-enters-african-114409169.html)

[3] Ripple USD Price, RLUSD Price, Live Charts, and Marketcap (https://www.coinbase.com/price/ripple-usd)