Ripple is focusing on Africa as a primary area for expansion of its USD-backed
RLUSD stablecoin.
On September 4th, Ripple
publicly stated
collaborations with fintech firms Chipper Cash, VALR, and Yellow Card to improve RLUSD access throughout Africa.
This move illustrates Ripple’s intention to establish RLUSD as a viable option for payments, particularly in locations where reliable financial systems are not widely available.
Ripple is already utilizing the digital asset for several humanitarian projects on the African continent.
One project in Kenya provides drought insurance, with Ripple managing funds held in escrow accounts that automatically release payouts to farmers when satellite imagery indicates severe water shortages.
A similar initiative addresses rainfall concerns, offering financial assistance when significant storms or floods negatively impact livelihoods. Both programs use smart contracts to provide speed and transparency, emphasizing stablecoins’ usefulness beyond speculation and trading.
According to Jack McDonald, Ripple’s senior vice president overseeing stablecoins, RLUSD is already playing a key role for institutional applications. This includes a variety of uses from payment solutions and asset tokenization projects, to serving as collateral in crypto and more established traditional markets.
He also noted:
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“We’re seeing demand for RLUSD from our customers and other key institutional players globally and are excited to now begin distribution in Africa through our local partners.”
Since it’s launch earlier this year,
RLUSD has seen impressive growth
, achieving a market cap exceeding $700 million.
Africa’s stablecoin market
Ripple’s focus on Africa comes as stablecoins grow in
prominence across the continent.
A recent
analysis
from Yellow Card revealed stablecoins account for 43% of crypto transaction volume in Sub-Saharan Africa.
Another
report
by the International Monetary Fund estimates stablecoin flows at approximately 7% of the region’s total GDP last year.
According to these reports, stablecoins are essential for digital asset movement in Africa as companies and individuals are increasingly dependent on them for mitigating foreign-exchange shortages, enabling faster settlement times, and completing international payments.
The reports indicate
Tether’s USDT
remains a dominant force in the region, handling over half of all transactions.