Ripple has partnered with Chainlink to enhance the adoption and functionality of its Ripple USD (RLUSD) stablecoin within decentralized finance (DeFi).
Ripple has partnered with Chainlink to enhance the adoption and functionality of its Ripple USD (RLUSD) stablecoin within decentralized finance (DeFi). This partnership integrates Chainlink’s decentralized oracle network to provide secure and accurate price data for RLUSD transactions on Ethereum and the XRP Ledger. Chainlink’s infrastructure, known for facilitating over $18 trillion in transaction value, will supply real-time market data to support RLUSD’s various use cases, such as trading, lending, and payments. Ripple’s Senior Vice President of Stablecoin, Jack McDonald, highlighted the importance of reliable pricing to build trust in decentralized markets.
RLUSD is a stablecoin pegged to the US dollar, designed for institutional DeFi applications. However, Ripple’s CTO, David Schwartz, recently cautioned about the potential for supply shortages to drive RLUSD prices above its dollar parity. Despite these concerns, Ripple aims to position RLUSD as a compliant and composable stablecoin to connect with decentralized applications. While the official launch date of RLUSD is yet to be announced, its integration with Chainlink underscores Ripple’s focus on delivering secure, enterprise-grade solutions.
Chainlink’s collaboration with Ripple is part of its broader efforts to provide decentralized data solutions to various blockchain projects. The network has also worked with platforms like Coinbase’s Project Diamond, regulated under the Abu Dhabi Global Market, to manage tokenized assets. By linking public and private blockchains with existing financial systems, Chainlink demonstrates its capacity to support large-scale DeFi adoption.
Ripple’s move comes as major European exchanges delist USDT due to non-compliance with the Markets in Crypto-Assets (MiCA) laws. This regulatory shift presents an opportunity for new stablecoins like RLUSD to capture market share in Europe. Data from CryptoQuant indicates growing interest in RLUSD, with tens of thousands of transactions recorded on the XRP Ledger and Ethereum since its initial rollout in December.
Chainlink’s Colin Cunningham and Johann Eid expressed optimism about the partnership, citing it as a milestone for both companies. They emphasized the importance of high-quality on-chain data in accelerating stablecoin adoption and supporting institutional DeFi. Ripple’s integration of Chainlink aims to ensure RLUSD is equipped with the tools necessary for seamless use in decentralized markets while maintaining compliance and cost-effectiveness.
The collaboration positions Ripple to benefit from increasing institutional interest in DeFi, as evidenced by investments in Chainlink and related technologies by entities like World Liberty Financial. By leveraging Chainlink’s technology, Ripple seeks to establish RLUSD as a key player in the evolving blockchain economy.
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