Ripple is rolling out its U.S. dollar-backed stablecoin RLUSD to institutional customers across Africa through partnerships with Chipper Cash, VALR and Yellow Card distributors. Launched in late 2024 and issued by a New York trust company regulated by the New York Department of Financial Services, RLUSD has grown to more than $700 million in supply across Ethereum and the XRP Ledger, according to RWA.xyz data.
Ripple says the token is intended for cross-border payments, on-chain settlement and corporate treasury use. Institutions can use RLUSD for remittances, liquidity management and as collateral for tokenized assets such as commodities or securities—use cases that target firms that struggle to access dependable local currency liquidity.
Separately, Mercy Corps Ventures is piloting RLUSD in Kenya for climate-risk insurance. One trial automates payouts when satellite data detects drought conditions; another ties claims to extreme rainfall events, releasing stablecoin funds when predefined thresholds are met.
Stablecoins like USDT are already widely used in parts of Africa for savings and transfers; RLUSD’s entry offers a regulated option aimed at institutional users. The move highlights how crypto firms are building infrastructure for faster, cheaper cross-border flows in markets with limited banking access.
Risks: Institutions should weigh regulatory and counterparty risk, on-chain custody considerations and local AML/KYC compliance when integrating stablecoins into treasury operations.
Source: CoinDesk. Read the original coverage for full details.