Ripple Launches $700M RLUSD Stablecoin in Africa for Payments and Insurance

What to Know

• Ripple launches $700M RLUSD stablecoin distribution in Africa targeting corporate and institutional users.
• Stablecoins are increasingly used for fast, low-cost cross-border payments in emerging markets.
• Mercy Corps pilots RLUSD for blockchain-based extreme weather insurance programs, including drought and rainfall coverage.

Ripple Expands RLUSD Stablecoin Across Africa

Ripple is accelerating the adoption of its U.S. dollar-backed stablecoin, Ripple USD (RLUSD), in Africa through strategic partnerships with Chipper Cash, VALR, and Yellow Card. This initiative aims to provide businesses and institutions across the continent with a stable digital dollar for cross-border payments, on-chain settlements, and liquidity management.

Since its launch in late 2024, RLUSD has grown to a supply exceeding $700 million, operating on both the Ethereum network and the XRP Ledger. The token can serve multiple purposes, including treasury operations, remittances, and collateral for trading tokenized assets such as commodities or securities. By offering a regulated stablecoin, Ripple seeks to deliver a reliable alternative to traditional banking and other unregulated digital dollars.

Stablecoins as a Cross-Border Payment Solution

In many emerging markets, access to stable currencies and efficient banking infrastructure is limited. Stablecoins like RLUSD provide a cost-effective and rapid way to conduct cross-border transactions. Already, some African residents use digital dollars, such as USDT, for savings and remittances. RLUSD’s regulated nature makes it especially suitable for institutional users who require compliant liquidity solutions while avoiding the volatility and operational challenges of local currencies.

Blockchain-Powered Climate Risk Insurance Pilots

Beyond payments, Ripple is exploring RLUSD’s potential in climate risk management. Mercy Corps Ventures is piloting RLUSD in blockchain-enabled drought and rainfall insurance programs in Kenya. In these trials, funds are automatically released when satellite data detects drought conditions or triggers rainfall-based payouts during extreme weather events. This innovative approach combines stable digital currency with smart contract automation to support communities vulnerable to climate shocks.

Institutional Adoption and Market Implications

Ripple’s expansion of RLUSD in Africa highlights growing institutional interest in stablecoins. By bridging regulated digital dollars with local financial systems, Ripple is creating an infrastructure that could enhance trade, remittances, and investment opportunities across the continent. As other fintech companies explore similar deployments, stablecoins are likely to become increasingly integral to Africa’s financial ecosystem.

Looking Ahead

With stablecoins gaining momentum, Africa could see a shift toward digital-first financial solutions. RLUSD’s dual focus on payments and climate insurance demonstrates the flexibility of blockchain technology to meet multiple financial needs. Institutional adoption, coupled with regulatory oversight, positions RLUSD as a leading tool for improving cross-border liquidity and enabling innovative financial services.

Q&A: RLUSD and Ripple in Africa

What is RLUSD?

RLUSD is a U.S. dollar-backed stablecoin issued by Ripple, designed for secure, regulated, and fast digital payments.

Which companies are partnering with Ripple to distribute RLUSD in Africa?

Chipper Cash, VALR, and Yellow Card are helping expand RLUSD access to corporate and institutional users.

How can RLUSD be used by institutions?

It can facilitate cross-border payments, act as collateral for tokenized assets, and support treasury and liquidity operations.

What role does RLUSD play in climate risk insurance?

Mercy Corps is piloting blockchain-powered insurance using RLUSD, releasing funds automatically during droughts or rainfall events.

Why is RLUSD important for African markets?

Stablecoins provide a low-cost, reliable, and regulated alternative for payments and financial services in regions with limited access to stable local currencies and traditional banking infrastructure.

Read more: What are Stablecoins?