Ripple taps African fintech for RLUSD push

Ripple, the US-based digital payments firm and issuer of the Ripple USD ($RLUSD) stablecoin, has officially expanded its operations into Africa.

On Wednesday, the company revealed in a press release that it would be partnering with fintech firms Chipper Cash, VALR, and Yellow Card to roll out RLUSD to institutional users across the continent.

Ripple believes this expansion will help businesses and financial institutions in Africa gain access to a reliable and stable digital dollar, which can be used for various purposes, including international money transfers, managing liquidity, and settling transactions directly on the blockchain.

“RLUSD is suitable for treasury operations, remittances, and as collateral for tokenised assets such as commodities and securities”, the company noted in its statement.

Ripple launched RLUSD in late 2024. The stablecoin is issued by a New York trust company regulated by the state’s Department of Financial Services. According to data from RWA.xyz, RLUSD has already surpassed $700 million in supply across Ethereum and the XRP Ledger.

Senior Vice President of Stablecoins at Ripple, Jack McDonald, described the stablecoin as already well-rooted in enterprise finance. “We’re seeing demand for RLUSD from our customers and other institutional players globally and are excited to now begin distribution in Africa through our local partners”, McDonald stated. 

He also confirmed that RLUSD has been integrated into Ripple Payments, which expands the range of stablecoin options for users of Ripple’s cross-border solutions.

This move into Africa reflects Ripple’s growing ambition to play a central role in the global stablecoin market. Chipper Cash CEO, Ham Serunjogi, referred to the expansion as “transformative”.

He explained that the partnership with Ripple was initially established to provide faster and more cost-effective international payments into Africa. “We were keen to make RLUSD available to our clients as soon as possible,” Serunjogi added.

South African cryptocurrency exchange, VALR, and pan-African digital payment platform, Yellow Card, will play vital roles in the initiative. 

While VALR is expected to provide market access through RLUSD listings, Yellow Card will help distribute the stablecoin to businesses in need of secure and compliant digital assets for international transactions.

Humanitarian use cases and growing institutional adoption

Ripple’s expansion into Africa is not only about financial infrastructure, it’s also linked to social impact. RLUSD is currently being used in pilot humanitarian programmes led by Mercy Corps Ventures in Kenya. 

These efforts aim to address climate-related financial risks by offering insurance powered by smart contracts.

The first project involves using RLUSD to back drought insurance for farmers. Funds are placed in escrow and released automatically based on satellite data that verifies drought conditions. 

The second pilot works in a similar fashion but is triggered by heavy rainfall, providing support to farmers affected by extreme weather.

These initiatives highlight the real-world potential of stablecoins beyond speculation or trading. By automating payouts based on climate data, Ripple and its partners aim to improve financial resilience in communities that are vulnerable to environmental disasters.

Ripple has also been positioning RLUSD within decentralised finance (DeFi). The token has been integrated into Aave’s Horizon platform, allowing it to be used as collateral. 

This further shows Ripple’s intention to link regulated finance with decentralised applications, bridging the gap between traditional institutions and blockchain-native solutions.

Moreover, Ripple’s entry into the African market builds upon its other international expansions. RLUSD has already been adopted in Europe under the EU’s MiCA framework and has made its way to Japan through a partnership with SBI Holdings. 

With Africa’s growing embrace of mobile money and blockchain-based financial tools, Ripple sees the continent as a logical next step in its broader strategy.

Ripple CEO, Brad Garlinghouse, has frequently spoken about the potential of the stablecoin market. He has suggested the sector could expand from its current $250 billion capitalisation to $2 trillion in the near future. RLUSD, he hopes, will be a key player in that growth story.

Regulatory headwinds and Ripple’s global ambitions

Ripple’s move comes at a time when global interest in stablecoins is intensifying. In the United States, President Donald Trump recently signed the GENIUS Act into law, giving banks the authority to issue dollar-backed stablecoins.

He described it as a “giant step” towards cementing the country’s leadership in crypto innovation and global finance.

Elsewhere, major financial institutions are also turning to stablecoins as a way to modernise their services. In July, Western Union’s CEO, Devin McGranahan, acknowledged the role stablecoins could play in overhauling remittance networks. 

He pointed to benefits such as smoother currency conversions and improved financial access in regions where banking services are limited or unstable.

However, not all economists are optimistic. Jean Tirole, who is a Nobel Prize-winning economist and professor at the Toulouse School of Economics, expressed concerns at a Nobel laureates’ conference in Lindau, Germany. “The stablecoin industry suffers from insufficient supervision”, Tirole warned. 

He noted that if such assets are widely held by retail or institutional depositors under the impression they are risk-free, governments might be forced to intervene during crises. “The government will be under a lot of pressure to rescue the depositors so they don’t lose their money”, Tirole added.

Despite regulatory uncertainty, the stablecoin market continues to grow. According to data from DefiLlama, the total market valuation of stablecoins stands at $285 billion. 

Ripple, which also operates the popular XRP token ($XRP), appears determined to capture a significant share of that market with RLUSD.

With its entry into Africa, Ripple joins other stablecoin issuers like Tether and Circle in targeting markets where access to the US dollar is limited but demand is high. Unlike some rivals, however, Ripple is focusing on institutional use cases and regulatory compliance. 

The company’s approach aims to offer a “compliance-grade” digital asset infrastructure, which appeals to governments, enterprises, and large payment providers.

RLUSD is already accessible through major exchanges including Bitstamp, Kraken, Gemini, Mercado Bitcoin, Bullish, and Uphold, among others. 

These listings are part of Ripple’s broader strategy to make RLUSD a go-to option for both domestic and cross-border financial activity.

Commenting on Ripple’s focus on Africa, Jack McDonald remarked: “RLUSD has quickly become established in enterprise financial use cases, from payments to tokenisation to collateral in both crypto and traditional trading markets. We’re seeing demand from our customers and other key institutional players globally”.

Yellow Card CEO, Chris Maurice, echoed this sentiment, emphasising that the stablecoin would address the rising need for digital tools supporting cross-border payments and treasury operations.

VALR CEO, Farzam Ehsani, noted that the listing of RLUSD “reflects our broader strategy to support trusted stablecoin options that serve the evolving needs of both institutional and retail clients.”

Ripple’s latest push positions RLUSD not just as a financial tool for enterprises but as a central element in its vision for a more interconnected and blockchain-friendly global economy. 

If successful, the African expansion could prove pivotal in setting the stage for Ripple’s stablecoin to move beyond niche use and into the mainstream of global finance.