Ripple's Regulated Stablecoin Solves Africa's Cross-Border Payment Pains

Ripple’s dollar-backed stablecoin, Ripple USD (RLUSD), has expanded its reach into Africa through strategic partnerships with fintech platforms Chipper Cash, VALR, and Yellow Card. The initiative aims to provide institutional users on the continent with access to a regulated, U.S. dollar-pegged stablecoin designed for cross-border payments, liquidity management, and on-chain settlement. The stablecoin, which launched in late 2024, has already surpassed $700 million in supply across the Ethereum and XRP Ledgers, according to RWA.xyz data [1].

The move aligns with growing demand for efficient and cost-effective cross-border payment solutions in emerging markets. In regions where access to reliable banking systems is limited, stablecoins have emerged as a viable alternative. According to reports, digital dollar tokens like USDT are already being used for savings and international transfers in parts of Africa [2]. RLUSD introduces a regulated option tailored specifically for institutional use, addressing the challenges of liquidity and compliance that many organizations face in local currency environments.

The stablecoin is being integrated into multiple enterprise financial use cases, including treasury operations, remittances, and as collateral for trading tokenized assets such as commodities or securities. Ripple has also enabled RLUSD in its Ripple Payments platform, expanding the breadth of stablecoins available in its cross-border payment solution. Jack McDonald, Senior Vice President of Stablecoins at Ripple, stated that the firm is seeing strong global demand for RLUSD, particularly from enterprise clients seeking compliance-first digital assets [3].

In parallel, Mercy Corps Ventures is piloting RLUSD in climate risk insurance programs in Kenya. One initiative uses the stablecoin as drought insurance for farmers, with funds held in escrow and released automatically when satellite data confirms a drought. A second pilot links RLUSD to parametric rainfall insurance, providing payouts during extreme weather events. These initiatives highlight the stablecoin’s potential beyond traditional financial infrastructure and into real-world applications where transparency and speed are critical.

The expansion underscores Ripple’s broader strategy to position RLUSD as a preferred stablecoin for regulated institutions globally. The firm has also secured listings on major exchanges such as Bitstamp, Kraken, and Gemini, ensuring wider accessibility for enterprises seeking compliance-grade digital assets. Partners like Chipper Cash, VALR, and Yellow Card emphasize the demand for high-quality digital assets in emerging markets, where institutional users increasingly seek reliable alternatives to traditional banking infrastructure. With its regulatory compliance and cross-border utility, RLUSD is expected to play a growing role in Africa’s evolving financial ecosystem.

Source: [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's USD-backed stablecoin RLUSD arrives in Africa (https://ripple.com/ripple-press/ripples-usd-backed-stablecoin-rlusd-arrives-in-Africa/) [3] Ripple Expands Dollar-Backed Stablecoin RLUSD to Africa ... (https://finance.yahoo.com/news/ripple-expands-dollar-backed-stablecoin-063813235.html)