Ripple's Regulated Stablecoin Set to Automate Climate Insurance in Africa

Ripple, the San Francisco-based blockchain technology company, is expanding its Ripple USD (RLUSD) stablecoin to Africa, marking a strategic move into a region where demand for reliable and low-cost cross-border payment solutions continues to grow. The stablecoin, which is backed by U.S. dollars and issued by a New York trust company under the oversight of the state’s Department of Financial Services, has surpassed $700 million in supply on both the Ethereum and XRP Ledger blockchains [1]. The rollout is being facilitated through new partnerships with fintech platforms Chipper Cash, VALR, and Yellow Card, all of which will offer RLUSD to institutional clients across the continent [1].

The expansion is designed to serve enterprise-grade use cases such as cross-border remittances, treasury management, and tokenized asset trading. Ripple emphasized that RLUSD is particularly suited to markets where traditional banking infrastructure is limited and where digital alternatives are increasingly relied upon for savings and international transactions [2]. This aligns with broader industry trends as stablecoins gain traction as cost-effective and faster alternatives to traditional payment systems. In parts of Africa, residents already use stablecoins like Tether (USDT), and Ripple’s entry into the market aims to provide a regulated option that meets the needs of institutional users [2].

In addition to financial services, RLUSD is being tested in innovative real-world applications. Mercy Corps Ventures, a nonprofit focused on social innovation, is piloting the stablecoin in climate risk insurance programs in Kenya. These include a drought insurance initiative, where RLUSD is held in escrow and automatically released based on satellite data detecting drought conditions. A similar pilot involves rainfall insurance, where payouts are triggered by extreme weather events [1]. These experiments highlight the potential of blockchain technology to automate and streamline insurance processes in emerging markets.

Ripple’s CEO of Products, Reece Merrick, has described the expansion into Africa as a long-anticipated milestone. “We’ve been waiting for this moment for a while,” he stated on social media, emphasizing the strategic importance of the region for blockchain adoption [3]. The company is also listing RLUSD on major exchanges such as Bitstamp, Kraken, and Gemini, further increasing its accessibility for global enterprises seeking compliance-grade infrastructure for digital assets [1].

The move reflects Ripple’s broader strategy to position RLUSD as a preferred stablecoin for regulated institutions worldwide. With partnerships already in place across the U.S., Dubai, and now Africa, the company is leveraging its network of compliant partners to expand the utility and reach of its stablecoin. By offering a stable, regulated digital dollar, Ripple aims to meet the growing demand for reliable liquidity in cross-border transactions, particularly in markets where local currency volatility and capital controls present persistent challenges [3].

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[1] Ripple Brings $700M RLUSD Stablecoin to Africa, Trials ... (https://www.coindesk.com/business/2025/09/04/ripple-brings-usd700m-rlusd-stablecoin-to-africa-trials-extreme-weather-insurances)

[2] Ripple Expands Dollar-Backed Stablecoin RLUSD to Africa ... (https://finance.yahoo.com/news/ripple-expands-dollar-backed-stablecoin-063813235.html)

[3] Breaking: Ripple Brings RLUSD to Africa (https://u.today/breaking-ripple-brings-rlusd-to-africa)