Ripple is planting deeper roots in Africa’s fast-growing payments market, and traders are wondering if the move will help lift the XRP price (XRP-USD). The company’s $700 million stablecoin Ripple USD (RLUSD) is now being rolled out across the continent through new partnerships with Chipper Cash, VALR, and Yellow Card.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ripple Expands RLUSD across Africa
The rollout will allow businesses to access a stable, digital dollar designed for cross-border payments, liquidity, and on-chain settlement. Ripple said the partnerships target institutional and corporate users, aiming to fill gaps where access to reliable local banking and stable currencies remains limited.
RLUSD, launched in late 2024, is pegged to the U.S. dollar and issued by a regulated New York trust company. Since its debut, RLUSD’s circulating supply has climbed past $700 million across Ethereum and the XRP Ledger. Ripple says it can be used for treasury operations, remittances, and as collateral for tokenized assets like commodities and securities.
Stablecoins Gain Ground in Emerging Markets
The expansion comes as stablecoins continue to gain traction in emerging economies where traditional banking systems are expensive or unreliable. In many parts of Africa, digital dollars like Tether’s USDT are already widely used for cross-border payments and even savings. RLUSD enters the picture as a regulated alternative, with Ripple positioning it squarely for institutional adoption.
This makes Ripple’s move not just about payments but about creating a regulated backbone for financial infrastructure. If businesses across Africa adopt RLUSD at scale, the resulting liquidity could drive higher demand on the XRP Ledger, indirectly supporting the XRP price.
Climate Insurance Pilots Put RLUSD to Work
Ripple’s reach is also extending into new real-world applications. Mercy Corps Ventures is testing RLUSD in climate risk insurance projects across Kenya. In one trial, funds are released automatically when satellite data signals drought conditions. Another pilot uses RLUSD to provide payouts for rainfall insurance, triggered when extreme weather strikes.
These experiments highlight how blockchain and stablecoins can plug into urgent, real-world needs. They also broaden Ripple’s presence in use cases far beyond remittances — a fact that could feed long-term confidence in the XRP ecosystem.
XRP Price Outlook Tied to Ripple’s Expansion
For XRP holders, the African expansion of RLUSD adds another reason to believe in Ripple’s broader strategy. While the direct effect on XRP’s price may take time, the introduction of a regulated stablecoin into fast-growing markets strengthens the case for more transactions, more liquidity, and more relevance for the XRP Ledger.
The XRP price is already gaining optimism around a possible spot ETF approval. Now, with Ripple pressing into Africa’s payments and insurance markets, investors have one more storyline to factor into their outlook.
At the time of writing, XRP is sitting at $2.8434.
