Africa Gets a Regulated Stablecoin Playbook, Ripple Styles

Generated by AI AgentCoin World
Friday, Sep 5, 2025 11:23 am ET1min read
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Aime RobotAime Summary

- Ripple's RLUSD, a USD-backed stablecoin, expands into Africa via partnerships with Chipper Cash, VALR, and Yellow Card, surpassing $700M in market cap since its 2024 launch.

- The move aims to boost institutional adoption of digital assets in Africa, supporting cross-border payments, remittances, and tokenized asset collateral through Ripple's enterprise solutions.

- Local partners highlight RLUSD's compliance advantages, while Mercy Corps Ventures uses it for blockchain-based climate insurance pilots in Kenya, including drought and rainfall parametric insurance.

- Available on major global exchanges, RLUSD targets both emerging and developed markets, positioning itself as a regulated stablecoin leader in digital assets.

Ripple's USD-backed stablecoin RLUSD has gained significant traction globally, with recent expansion efforts into Africa through partnerships with local

financial institutions
. Launched in late 2024, RLUSD has already surpassed $700 million in market capitalization, reflecting growing demand for a stablecoin that emphasizes compliance and transparency [1]. The stablecoin, backed by an NYDFS-issued trust company, is now available through three African platforms—Chipper Cash, VALR, and Yellow Card—marking a strategic move to enhance institutional adoption of digital assets in the region [1].

The introduction of RLUSD in Africa aligns with Ripple’s broader objective of promoting enterprise-grade solutions in cross-border payments, remittances, and treasury management. Ripple’s SVP of Stablecoins, Jack McDonald, noted that the stablecoin has already proven its utility in various financial applications, including collateral for trading and tokenization of real-world assets. The inclusion of RLUSD in Ripple Payments further extends its integration into the company’s cross-border solutions, improving efficiency for clients in Africa and beyond [1].

Local African partners have expressed strong support for the expansion. Chipper Cash, a leader in cross-border payments, highlighted the potential of RLUSD to drive institutional adoption of blockchain technology across the continent. VALR, the largest crypto exchange in Africa, emphasized the importance of providing compliant and high-quality digital assets to meet the needs of both institutional and retail clients. Yellow Card, meanwhile, underscored its commitment to reliable and secure payment infrastructure, noting that offering a regulated stablecoin like RLUSD aligns with customer demand for trusted solutions [1].

Beyond institutional adoption, RLUSD is being utilized in innovative humanitarian projects led by Mercy Corps Ventures in Kenya. The stablecoin is currently supporting pilot programs that leverage blockchain for climate-related insurance. In one initiative, farmers receive drought insurance through smart contracts, with RLUSD held in escrow and released automatically if satellite data confirms a drought. A second project will use RLUSD to underpin parametric rainfall insurance, offering financial protection during periods of heavy rain [1].

Ripple has also expanded RLUSD’s availability through several top-tier global exchanges, including Bitso, Bitstamp, Bullish, CoinMENA, Independent Reserve, Gemini, Kraken, LMAX, Mercado

Bitcoin
, and Uphold. This global distribution strategy ensures that the stablecoin remains accessible to a wide range of users, from individual investors to institutional clients. With its growing presence in both emerging and developed markets, RLUSD continues to position itself as a key player in the evolving digital asset landscape [1].

Source:

[1] Ripple's USD-backed stablecoin RLUSD arrives in Africa (https://ripple.com/ripple-press/ripples-usd-backed-stablecoin-rlusd-arrives-in-Africa/)