Ripple's Stablecoin Targets Africa's Cross-Border Pain Points with Precision

Generated by AI AgentCoin World
Friday, Sep 5, 2025 7:26 am ET1min read
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Aime RobotAime Summary

- Ripple expands RLUSD stablecoin to Africa via Chipper Cash, VALR, and Yellow Card partnerships, targeting institutional cross-border payments and liquidity solutions.

- The New York-regulated stablecoin, with $700M supply on Ethereum/XRP blockchains, offers a compliant alternative to traditional banking for treasury operations and tokenized assets.

- RLUSD pilots in Kenya use satellite data for automated climate risk insurance payouts, demonstrating stablecoin integration beyond finance into real-world applications.

- Ripple's expansion aligns with global trends in DeFi and cross-border payments, with RLUSD integrated into its Payments solution and available on major exchanges like Bitstamp and Kraken.

Ripple has expanded its U.S. dollar-backed stablecoin, Ripple USD (RLUSD), to Africa through partnerships with Chipper Cash, VALR, and Yellow Card. The initiative aims to provide institutional users with access to a stable, digital dollar for cross-border payments, liquidity, and on-chain settlement. The stablecoin is being promoted as a regulated alternative that addresses challenges related to liquidity in local currencies and offers a more efficient option for financial operations compared to traditional banking systems [1].

Launched in late 2024, RLUSD has grown to over $700 million in supply across the

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blockchains, according to RWA.xyz data. The token is issued by a New York trust company regulated by the state’s Department of Financial Services. Ripple positions RLUSD as a tool for treasury operations, remittances, and as collateral for tokenized assets such as commodities or securities [2]. This expansion marks Ripple’s strategic move to strengthen its stablecoin’s presence in emerging markets, where stablecoins are gaining traction as a cost-effective alternative to conventional financial channels.

The partnerships with Chipper Cash, VALR, and Yellow Card are expected to facilitate the distribution of RLUSD to corporate and institutional users across Africa. Chipper Cash’s CEO noted that RLUSD is well-positioned to drive blockchain adoption in the region, particularly in cross-border transactions. VALR, as the largest crypto exchange in Africa, emphasized its commitment to providing high-quality digital assets, including RLUSD, to both institutional and retail clients. Yellow Card’s CEO highlighted the demand for compliant stablecoins for secure cross-border payments and treasury management [2].

In parallel, RLUSD is being utilized in blockchain-powered climate risk insurance pilots in Kenya, led by Mercy Corps Ventures. One program uses the stablecoin to fund drought insurance, with automatic payouts triggered by satellite data confirming drought conditions. A second initiative is designed to provide parametric rainfall insurance, offering support during periods of extreme weather. These trials underscore the growing integration of stablecoins into real-world applications beyond traditional financial services [1].

Ripple’s expansion of RLUSD reflects broader trends in the adoption of stablecoins for enterprise financial use cases, including instant settlement of cross-border payments and integration with decentralized finance (DeFi) protocols. The company has also integrated RLUSD into its Ripple Payments solution, expanding the range of stablecoins available for cross-border transactions. Ripple has previously partnered with exchanges such as Bitstamp and Kraken to increase the stablecoin’s global availability [2].

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/)