Ripple's Regulated Stablecoin Targets Africa's Institutional Needs

Ripple, the digital asset company focused on cross-border payments, is expanding its regulated U.S. dollar-backed stablecoin, Ripple USD (RLUSD), to institutional users in Africa through partnerships with fintech platforms Chipper Cash, VALR, and Yellow Card. The initiative aims to provide businesses with access to a stable digital dollar for cross-border payments, liquidity management, and on-chain settlement, according to a press release from Ripple.

RLUSD, which launched in late 2024 and is issued by a New York trust company regulated by the state’s Department of Financial Services, has exceeded $700 million in supply on both the Ethereum and XRP Ledgers. The stablecoin is designed for institutional use cases, including remittances, treasury operations, and tokenized asset trading. Ripple emphasized that RLUSD's regulated structure differentiates it from other stablecoins commonly used in emerging markets like Africa, where alternatives such as USDT are already prevalent for savings and international transfers [1].

Stablecoins are increasingly being adopted in regions where access to traditional banking infrastructure is limited, offering faster and lower-cost alternatives for cross-border transactions. Ripple’s expansion into Africa aligns with this trend, addressing the demand for reliable digital assets among institutional users. Chipper Cash CEO Ham Serunjogi noted that RLUSD is well positioned to drive institutional adoption of blockchain technology in Africa and beyond [2].

Beyond payments, RLUSD is being used in innovative real-world applications. In Kenya, Mercy Corps Ventures is piloting the stablecoin in climate risk insurance programs. One pilot holds RLUSD in escrow and automatically disburses funds when satellite data detects drought conditions. Another initiative involves rainfall insurance, where payouts are triggered in the event of extreme weather events. These trials highlight the potential of stablecoins to support financial resilience in vulnerable communities [2].

Ripple’s strategic focus on Africa reflects a broader ambition to establish RLUSD as a preferred stablecoin for regulated institutions globally. The company has also secured listings on major exchanges like Bitstamp, Kraken, and Gemini, enhancing accessibility for enterprises seeking compliance-grade digital infrastructure [2].

The move underscores the growing role of stablecoins in financial innovation, particularly in emerging markets where traditional systems often fall short. Analysts suggest that the expansion of regulated stablecoins like RLUSD could help bridge gaps in access to liquidity and payment efficiency, particularly for businesses operating across borders. As stablecoins continue to evolve, their integration into institutional and real-world applications is likely to shape the future of digital finance [1].

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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] Ripple Brings $700M RLUSD Stablecoin to Africa, Trials ... (https://finance.yahoo.com/news/ripple-brings-700m-rlusd-stablecoin-050000239.html)