Ripple's Regulated Stablecoin Targets Africa's Institutional Payments Gap

Ripple is expanding its U.S. dollar-backed stablecoin, Ripple USD (RLUSD), into Africa, targeting institutional users through strategic partnerships with fintech platforms Chipper Cash, VALR, and Yellow Card. The initiative aims to provide businesses with a stable, digital dollar for cross-border payments, liquidity, and on-chain settlement. Launched in late 2024, RLUSD, issued by a New York trust company regulated by the state’s Department of Financial Services, has already surpassed $700 million in supply on the Ethereum and XRP blockchains [1]. The stablecoin is designed to address the growing demand for reliable, low-cost cross-border payment infrastructure in regions with limited access to banking systems [2].

Stablecoins, such as USDT, are already widely used in parts of Africa for savings and international transfers [3]. RLUSD offers an alternative that is specifically tailored for institutional use, with built-in compliance and regulatory oversight. Ripple positions RLUSD as a regulated, enterprise-grade digital asset, suitable for treasury operations, remittances, and as collateral for tokenized assets such as commodities or securities [2]. The firm also highlights its potential for integration into DeFi platforms and as a bridge between traditional finance and the crypto ecosystem [3].

The expansion into Africa aligns with broader trends in the adoption of stablecoins as a faster and cheaper alternative to traditional banking systems. Chipper Cash, VALR, and Yellow Card are integrating RLUSD into their platforms to facilitate instant and cost-effective cross-border payments, enhance stablecoin listings, and improve payment infrastructure for emerging markets [1]. Chipper Cash’s CEO, Ham Serunjogi, emphasized that RLUSD is uniquely positioned to drive institutional blockchain adoption across Africa and global markets [2]. VALR and Yellow Card similarly highlighted the growing demand for high-quality digital assets and reliable stablecoin solutions [2].

In parallel, RLUSD is being tested in real-world applications, particularly in climate risk insurance initiatives in Kenya. Mercy Corps Ventures is piloting the stablecoin to fund climate insurance programs that automatically release funds when satellite data detects drought or extreme weather conditions. These initiatives showcase the potential of blockchain technology to streamline financial assistance in humanitarian and agricultural contexts [2]. The integration of RLUSD into such programs underscores its role beyond payments and into broader institutional use cases [3].

Ripple’s expansion into Africa reflects its broader ambition to position RLUSD as a preferred stablecoin for regulated institutions worldwide. The stablecoin is already listed on major exchanges including Kraken, Gemini, and Bitstamp, increasing its accessibility for enterprises seeking compliance-grade digital asset infrastructure [2]. Ripple also highlighted the growing trend of tokenization, projecting that 10% of global assets could be tokenized by 2030 [3]. As stablecoins continue to gain traction, Ripple’s push into Africa represents a significant step in its global strategy to challenge dominant stablecoins like USDT in emerging markets [3].

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[1] Ripple Brings $700M RLUSD Stablecoin to Africa, Trials Extrem... (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's Foray Into Africa's Stablecoin Market Could ... (https://www.benzinga.com/crypto/cryptocurrency/25/09/47502073/ripples-foray-into-africas-stablecoin-market-could-replace-tethers-usdt-with-rlusd)