XRP News Today: Ripple's Stablecoin Rivaling SWIFT in Africa's Digital Payment Shift

Ripple has expanded its U.S. dollar-backed stablecoin Ripple USD (RLUSD) to Africa, partnering with local payment platforms to facilitate cross-border transactions for institutional users. The stablecoin, launched in late 2024 and issued by a New York trust company, has grown to over $700 million in supply on both the Ethereum and XRP Ledger blockchains. This initiative aims to provide businesses with a stable, digital dollar alternative for payments, liquidity, and on-chain settlements [1].

The rollout of RLUSD is being supported by partnerships with Chipper Cash, VALR, and Yellow Card, which are key players in the African financial ecosystem. These collaborations are aimed at addressing challenges such as limited access to reliable currencies and costly traditional banking systems. In emerging markets like Africa, where digital alternatives like USDT are already in use for savings and transfers, RLUSD offers a regulated alternative specifically tailored for institutional users [1].

In addition to facilitating financial transactions, Ripple is also leveraging RLUSD in innovative applications such as climate risk insurance. Mercy Corps Ventures is currently piloting a program in Kenya where RLUSD is used to automate payouts for drought and rainfall insurance. This use case demonstrates the potential of stablecoins in addressing real-world challenges such as weather-related financial risks [1].

Ripple’s expansion into Africa reflects a broader trend of blockchain-based solutions competing with traditional cross-border payment systems. The company is also in the process of acquiring Rail, a Toronto-based platform specializing in stablecoin-based cross-border payments, for $200 million. This acquisition is expected to enhance Ripple’s ability to offer end-to-end stablecoin payment solutions, positioning the firm as a major player in the evolving financial landscape [2].

Meanwhile, the stablecoin’s entry into Africa aligns with Ripple’s broader strategy to challenge traditional systems like SWIFT, which has long dominated cross-border transactions. Ripple’s XRP Ledger enables near-instant settlements and lower transaction fees compared to SWIFT’s more traditional, slower, and often more costly processes. The company is also exploring the possibility of obtaining a U.S. banking charter, which would allow it to operate as a federally regulated trust bank and potentially strengthen its credibility among institutional clients [3].

As Ripple continues to expand its RLUSD stablecoin and blockchain infrastructure, the company is also engaging with broader financial innovation efforts. SWIFT, the longtime leader in global banking, is itself exploring integrations with public blockchains such as Ripple’s XRP Ledger, suggesting a potential future where both systems coexist or even interoperate. This indicates that while Ripple poses a challenge to traditional financial systems, the ultimate outcome may involve a hybrid model where blockchain and traditional banking systems complement each other to meet evolving market demands [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] Breaking: Ripple Brings RLUSD to Africa (https://u.today/breaking-ripple-brings-rlusd-to-africa)

[3] Ripple vs. SWIFT: The Battle for Cross-Border Payments— ... (https://www.ccn.com/education/crypto/ripple-vs-swift-blockchain-banking-behemoth)