Ripple RLUSD Targets African Stablecoin Market Amid SEC Lawsuit Insights
By: Eva Baxter
In a significant move aimed at expanding its influence in the global stablecoin market, Ripple has set its sights on Africa with its RLUSD stablecoin, a strategy poised to challenge Tether's dominance in the continent. Announced on September 4, Ripple has engaged in partnerships with fintech companies such as Chipper Cash, VALR, and Yellow Card to enhance the accessibility of RLUSD across Africa. This initiative exemplifies Ripple's commitment to using RLUSD as a multifaceted tool for financial transactions in regions lacking access to consistent financial infrastructure.
Already active in social impact efforts, Ripple is leveraging its digital asset for climate adaptation initiatives in Kenya, among other projects. The programs offer drought and flood insurance powered by smart contracts that disburse funds promptly based on satellite data, emphasizing transparency and speed. Beyond its immediate use cases, the RLUSD stablecoin is also implemented in institutional solutions, from payment systems to tokenization ventures. Ripple's senior vice president for stablecoins, Jack McDonald, notes a growing global demand for RLUSD, reflecting its emerging importance in the international crypto market.
Africa's stablecoin landscape is evolving, with stablecoins representing a significant portion of crypto transaction volume in Sub-Saharan Africa, according to research by Yellow Card. The rising prominence of stablecoins in this region highlights their critical role in overcoming foreign-exchange issues and facilitating international transactions. As per the International Monetary Fund, stablecoin flows have accounted for a sizeable segment of the region's GDP, underscoring their integral role in the local economy. Though Tether's USDT remains dominant, Ripple's strategic entry with RLUSD could see a shift in these dynamics.
Meanwhile, Ripple has been navigating legal battles, successfully overcoming a pivotal lawsuit with the US Securities and Exchange Commission (SEC). The SEC had accused Ripple of selling its XRP token as an unregistered security, a case that concluded earlier this year after significant advocacy from XRP tokenholders, colloquially known as the "XRP Army." Legal expert John Deaton emphasizes the importance of these community members in influencing the outcome favorably for Ripple. With legal dust settling, Ripple's strategic focus is now prominently on leveraging its stablecoin initiatives in emerging markets like Africa.
