Ripple's Stablecoin Contends for the African Battlefield
Ripple's US Dollar-backed stablecoin, RLUSD, has made a significant entry into African markets, with a growing number of partnerships and listings driving its adoption.
RLUSD, while gaining traction, still has a long way to go if it hopes to match the liquidity and daily flows of market leaders. However, its presence in African markets is undeniable. Ripple has partnered with Singapore-based Trident Digital Tech Holdings, which is deploying a nationwide digital ID system in the Democratic Republic of Congo. This partnership aims to drive the adoption of RLUSD, with Trident's digital identity infrastructure enhancing financial inclusion for over 110 million DRC citizens.
Ripple's collaborations extend globally, including with SBI Holdings. In Africa, besides Trident, specific partners have not been explicitly named in the search results. Notably, RLUSD's push seems to be aimed more at banks and big payments firms than at casual traders.
Ham Serunjogi, CEO of Chipper Cash, a fintech company that already serves millions of users across the continent, stated that RLUSD is "uniquely positioned to accelerate institutional blockchain adoption across Africa and beyond." The rollout of RLUSD leans on three major fintech partners: Chipper Cash, VALR, and Yellow Card.
RLUSD's listings allow institutions to use the stablecoin for payments, settlement, and collateral management. Jack McDonald, SVP of Stablecoins at Ripple, stated that demand is growing across payments, tokenization, and collateral markets.
Despite having a substantial market capitalization, RLUSD still sits well below the largest stablecoins. However, the fact that RLUSD has a significant market capitalization signals real capital backing the push. The listings of RLUSD aim to make it usable on familiar trading and custody platforms, which can shorten the path to institutional adoption.
On-chain metrics show rising activity for RLUSD, with monthly transaction volumes climbing from almost $120 million in July to $194 million in August. RLUSD has been listed on a growing set of exchanges, including Gemini, Kraken, Bitso, Bitstamp, Bullish, LMAX, Uphold, Mercado Bitcoin, Independent Reserve, and CoinMENA.
Ripple has introduced RLUSD into African markets not just for financial transactions, but also for humanitarian work. Partnerships with organisations like Mercy Corps Ventures are linking RLUSD to blockchain-based insurance products for drought and rainfall risks in Kenya. These humanitarian pilots using RLUSD are small but aimed at showing the potential of stablecoins for practical financial services in areas affected by climate shocks.
Despite the increase, RLUSD's transaction volumes are still small compared to established stablecoins that process billions each month on Ethereum and Tron. However, the partnerships give RLUSD instant rails into retail and business flows without Ripple having to build consumer trust from scratch. As RLUSD continues to grow and establish itself in African markets, it could potentially challenge the dominance of established stablecoins.
