Ripple USD, an enterprise-focused stablecoin issued by XRP cryptocurrency issuer Ripple, is now available for institutions in Africa via new partnerships with three major African players, including Chipper Cash, VALR, and Yellow Card distributors.
In a Thursday press release, Ripple said the expansion seeks to give businesses across the continent access to a stable, digital dollar created for international payments, liquidity, and on-chain settlements.
Africa has long been a key crypto hub as local economies suffer from local currency volatility and capital controls. According to Ripple, Africans are forced to deal with costly cross-border settlements.
In Kenya specifically, the RLUSD stablecoin is also gaining popularity in climate risk insurance initiatives. In one pilot project, the stablecoin funds are released automatically when satellite data signals drought conditions. Another trial underpins rainfall insurance, with payouts triggered by extreme weather events.
Ripple’s managing director for the Middle East and Africa, Reece Merrick, noted that the blockchain payments firm had been waiting for this specific moment “for a while.”
Rapid Growth Since Debut
RLUSD, which went live in December 2024 on both XRP Ledger and Ethereum, is backed 1:1 by reserves including U.S. dollar deposits, short-term U.S. government bonds, and other cash equivalents. The stablecoin currently has a market capitalization of approximately $709.5 million, with a 24-hour trading volume of $43 million as of publication time.
Ripple’s stablecoin move comes amid a wider boom across the stablecoin sector. The supply of USD-pegged stablecoins reached $282 billion as of Thursday, up from around $250 billion on Aug. 1.
The Dubai Financial Services Authority greenlighted RLUSD as a payment rail within the Dubai International Financial Centre in June, expanding the stablecoin’s footprint in the jurisdiction.
Meanwhile, Ripple has already applied to the Office of the Comptroller of the Currency for a national trust-bank charter, a license that would let it issue RLUSD under federal banking rules and hold customer deposits directly.
Source: https://zycrypto.com/xrp-issuer-ripple-rolls-out-its-710-million-rlusd-stablecoin-in-africa/
