Ripple's Regulated Stablecoin Taps Into Africa's $700M Climate-Ready Future

Ripple, a digital asset infrastructure provider, has expanded its U.S. dollar-backed stablecoin, RLUSD, into Africa through partnerships with local fintech firms Chipper Cash, VALR, and Yellow Card. This move aims to enhance access to a reliable digital dollar for institutional users across the continent, particularly for cross-border payments, liquidity management, and on-chain settlements. RLUSD, launched in late 2024, is issued by a trust company regulated by New York’s Department of Financial Services and has reached a market capitalization of over $700 million on the Ethereum and XRP blockchains [1].

The deployment of RLUSD in Africa aligns with growing demand for stablecoins in the region, where they are increasingly used as a tool to bypass foreign exchange restrictions and streamline international transactions. A report from Yellow Card indicates that stablecoins account for 43% of crypto transaction volume in Sub-Saharan Africa. Meanwhile, the International Monetary Fund estimates stablecoin flows represented nearly 7% of the region’s GDP in 2024 [2]. These figures highlight the critical role stablecoins play in supporting digital financial activity, particularly in markets with limited access to traditional banking services.

Ripple’s expansion into Africa is also supported by strategic initiatives to address climate-related risks. In Kenya, the company is collaborating with Mercy Corps Ventures on a pilot project using RLUSD to provide drought insurance. Funds are held in escrow and automatically released to farmers via smart contracts when satellite data confirms severe water shortages. A parallel initiative is underway for rainfall insurance, where payouts are triggered by extreme weather events. These use cases demonstrate how stablecoins can serve beyond trading, offering real-world applications in risk mitigation and financial resilience [1].

Jack McDonald, Ripple’s senior vice president for stablecoins, emphasized the growing institutional demand for RLUSD, citing its utility in payments, tokenization, and as collateral in both crypto and traditional markets. He noted that the company has also integrated RLUSD into its Ripple Payments solution, expanding the range of stablecoins available for cross-border transactions [3]. The company’s partnerships with major exchanges such as Bitstamp, Kraken, and Gemini further reinforce its global accessibility [3].

Africa’s stablecoin landscape is evolving rapidly, with Tether’s USDT currently dominating transaction volume. However, RLUSD aims to establish itself as a regulated and institutional-grade alternative. By focusing on compliance and transparency, Ripple is positioning RLUSD to meet the needs of institutional clients seeking a stable and secure digital asset for treasury operations, remittances, and DeFi integrations [1]. The company’s approach reflects broader industry trends toward compliance-first stablecoins, particularly in markets with growing crypto adoption and regulatory scrutiny.

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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 targets Africa for RLUSD stablecoin expansion (https://cryptoslate.com/?p=496766)

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