Ripple's Regulated Stablecoin Targets Africa's Climate-Driven Financial Gaps

Ripple, the digital asset infrastructure firm, is expanding its U.S. dollar-backed stablecoin, Ripple USD (RLUSD), to Africa through partnerships with local fintech firms Chipper Cash, VALR, and Yellow Card. This move aims to provide institutional users with access to a regulated stablecoin that supports cross-border payments, liquidity management, and on-chain settlements. The stablecoin, launched in late 2024, has grown to a supply of over $700 million on Ethereum and the XRP Ledger, according to data from RWA.xyz [1]. RLUSD is issued by a New York trust company regulated by the state’s Department of Financial Services, reinforcing its compliance-focused structure [2].

The expansion into Africa aligns with the growing adoption of stablecoins in emerging markets, particularly where access to traditional banking systems and stable currencies remains limited. In many parts of Africa, digital dollars like USDT have already been used for savings and cross-border transactions. RLUSD now offers an alternative with a stronger regulatory foundation, specifically tailored for institutional clients. Jack McDonald, Senior Vice President of Stablecoins at Ripple, noted that RLUSD has already gained traction in enterprise financial applications globally, including payments, tokenization, and collateral for trading tokenized assets [2]. The integration of RLUSD into Ripple Payments further enhances cross-border solutions for customers in Africa and beyond [2].

The partnerships with Chipper Cash, VALR, and Yellow Card underscore Ripple’s strategy to establish RLUSD as a preferred stablecoin for institutional and corporate use in Africa. Ham Serunjogi, CEO of Chipper Cash, emphasized that the stablecoin is uniquely positioned to drive blockchain adoption in the region, particularly for cross-border payments. Similarly, Farzam Ehsani, CEO of VALR, highlighted the importance of providing high-quality and compliant digital assets to both institutional and retail clients. Yellow Card’s CEO, Chris Maurice, added that offering a regulated stablecoin like RLUSD is a natural step in delivering trusted, enterprise-grade financial solutions across Africa [2].

Beyond financial services, RLUSD is also being tested in real-world applications. Mercy Corps Ventures is piloting the stablecoin in Kenya for climate risk insurance programs, linking payouts to weather conditions. One initiative uses RLUSD held in escrow, which is released automatically when satellite data confirms a drought. Another pilot provides parametric rainfall insurance, with funds disbursed in response to extreme weather events. These trials demonstrate how stablecoins can support financial resilience in regions vulnerable to climate-related shocks [1].

The broader availability of RLUSD is further supported by its listings on major exchanges such as Bitstamp, Kraken, and Gemini, ensuring access for enterprises seeking compliance-grade infrastructure for digital assets. Ripple continues to collaborate with global partners to expand the reach of RLUSD, reinforcing its position as a key player in the stablecoin market. As demand for efficient cross-border payment solutions grows in Africa, Ripple’s strategic partnerships and real-world use cases position RLUSD as a viable, regulated alternative to existing stablecoins in the region [3].

Source:

[1] Ripple Brings $700M RLUSD Stablecoin to Africa, Trials Extreme Weather Insurances (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)