Ripple and Chainlink Collaborate to Strengthen RLUSD Stablecoin

By: Eva Baxter

Ripple, known for its blockchain solutions, has entered into a strategic partnership with Chainlink, a decentralized oracle network, to enhance its RLUSD stablecoin by incorporating secure and verifiable data feeds. This collaboration, announced on January 7, involves integrating Chainlink’s advanced blockchain technology into Ripple's ecosystem, specifically targeting the Ethereum network. The RLUSD stablecoin, which maintains its peg to the US dollar, was launched in December after receiving the nod from the New York Department of Financial Services. With a robust market capitalization of $77 million, RLUSD is operational on both the XRP Ledger and Ethereum.

This strategic enhancement is aimed at the decentralized finance (DeFi) sector, where the necessity for accurate and reliable price data is paramount for facilitating stablecoin-based operations, including trading and lending. By incorporating Chainlink’s Price Feeds, Ripple guarantees that RLUSD benefits from comprehensive, volume-weighted price information from diverse on-chain and off-chain sources. This integration not only bolsters RLUSD's utility across various DeFi platforms but also offers developers access to dependable data that can drive broader adoption of the stablecoin.

Chainlink's Chief Business Officer, Johann Eid, emphasized the growing importance of tokenized assets such as stablecoins in financial applications, highlighting the role of on-chain data in accelerating their adoption. The collaboration has already seen RLUSD being incorporated into major DeFi protocols, including Aave, utilizing Chainlink's state-of-the-art data feeds. Ripple's decision to collaborate with Chainlink stemmed from Chainlink’s proven ability to provide decentralized, high-quality data. Jack McDonald, Ripple’s SVP of Stablecoin, remarked that the collaboration is set to strengthen RLUSD's functionality across institutional and decentralized applications.

In the broader crypto landscape, Chainlink's technology is significant, supporting transactions worth trillions globally. Various crypto projects and traditional financial institutions, such as the Coinbase-backed Base network and ANZ bank, have leveraged Chainlink’s infrastructure to optimize their operational efficiency. As the demand for tokenized assets rises, the partnership between Ripple and Chainlink is poised to ensure that RLUSD remains competitive and reliable in the fast-evolving DeFi sector.