What happened?
Ripple has expanded its US dollar-backed stablecoin, Ripple USD (RLUSD), to Africa by partnering with fintech platforms Chipper Cash, VALR, and Yellow Card. This move enables institutional users in Africa to have access to a regulated digital dollar. Launched in 2024, RLUSD is issued by a New York trust company and has surpassed $700 million in supply on Ethereum and the XRP Ledger.
Who does this affect?
This expansion affects institutional users in Africa where demand for reliable cross-border payment infrastructure continues to grow. CEO of Chipper Cash, Ham Serunjogi, commented that RLUSD could drive institutional use of blockchain technology across Africa and other global markets. It also influences the functioning of climate insurance pilots in Kenya where it is being tested, linking payouts to real-world weather data.
Why does this matter?
This matters because Ripple’s strategic entrance into Africa reflects a broader aim to position RLUSD as a preferred stablecoin for regulated institutions globally. Stablecoins like RLUSD are gaining traction as they offer a faster, lower-cost alternative to traditional payment methods, particularly in areas with limited banking infrastructure. The expansion of RLUSD provides a regulated option tailored to institutions while facilitating savings and international transfers.