Ripple Expands Presence in Africa with RLUSD Stable Coin
Ripple has identified Africa as a key growth market for its US dollar-pegged stable coin, RLUSD. In a recent announcement, the company revealed that it has partnered with FinTech firms Chipper Cash, Valr, and Yellow Card to increase the accessibility of RLUSD across the continent. This move is part of Ripple’s efforts to promote RLUSD as a reliable instrument for payments and settlements in regions with limited access to traditional financial infrastructure.
The partnership is the latest step in Ripple’s strategy to establish RLUSD as a leading stable coin in Africa. The company has already been using RLUSD for social impact projects on the continent, including a climate-related initiative in Kenya. The program uses satellite data to provide drought insurance to farmers, with payouts made automatically when water shortages are detected. Another pilot project uses a similar approach to offer payouts when flooding or heavy storms disrupt livelihoods.
The Potential of RLUSD in Africa
According to Jack McDonald, Senior Vice President of Ripple at StableCoins, RLUSD has already demonstrated its value in institutional applications, ranging from payment solutions to tokenization projects and security in crypto and traditional markets. McDonald noted that there is strong demand for RLUSD from customers and institutional actors worldwide, and the company is happy to start sales in Africa through local partners.
RLUSD has gained significant traction since the start of the year, achieving a market capitalization of over $700 million. The stable coin’s growth is part of a broader trend in Africa, where stable coins are becoming increasingly popular. A recent study by Yellow Card found that stable coins account for 43% of crypto transaction volume in Africa south of the Sahara, while a report by the International Monetary Fund estimated that stable coin flows reach almost 7% of the region’s total GDP.
Africa’s Stable Coin Market
The African stable coin market is dominated by Tether’s USDT, which processes more than half of the total transactions. However, Ripple is looking to displace USDT’s dominance with RLUSD. The company’s partnerships with local FinTech firms and its focus on social impact projects are key to its strategy. As the demand for stable coins continues to grow in Africa, RLUSD is well-positioned to become a leading player in the market.
For more information on Ripple’s expansion in Africa and the growth of the stable coin market on the continent, visit https://cryptoslate.com/ripple-looks-to-displace-tethers-usdt-dominance-in-africa-with-rlusd/
