Ripple, a blockchain service provider associated with the XRP Ledger, announced its partnership with data provider Chainlink. The collaboration aims to integrate Ripple's RLUSD stablecoin with decentralized finance (DeFi) applications.
“By enabling seamless functionality across DeFi, RLUSD is well-positioned to support a growing range of use cases in decentralized financial systems,” Jack McDonald, Senior Vice President of Stablecoin at Ripple, told CoinDesk.
RLUSD Stablecoin Launches on Ethereum, XRP
The integration, launched on the Ethereum blockchain, enables developers to use RLUSD in DeFi protocols. These applications include trading, lending, and other financial services. The RLUSD stablecoin, pegged to the US dollar, was made available on Ethereum and the XRP Ledger networks last month. As of now, the stablecoin's market capitalization stands at $72 million, according to CoinGecko.
“Integrating Chainlink Price Feeds provides RLUSD with the essential infrastructure it needs to deliver accurate and decentralized pricing data to DeFi applications. This ensures that protocols using RLUSD for a broad range of financial activities can operate reliably and transparently,” McDonald added.
Chainlink Integration Supports RLUSD Cross-Border Payments
Ripple's adoption of Chainlink’s services is intended to support the wider use of RLUSD in DeFi. The move seeks to enhance the stablecoin’s role in secure, cost-effective cross-border payments.
DeFi applications rely on accurate pricing data to mitigate risks related to stablecoin usage. Chainlink’s infrastructure, which has supported over $18 trillion in transactions, provides the necessary data services.
.@Ripple x @Chainlink: $RLUSD has adopted the Chainlink standard for verifiable data to fuel DeFi adoption with real-time, secure pricing data. The future of stablecoins is here: https://t.co/mq3cThLGQJ pic.twitter.com/993Ac0o282
— Ripple (@Ripple) January 7, 2025
XRP Adoption in Japan Could Drive Market Growth
In 2025, Ripple's XRP Ledger will be adopted by all banks in Japan, marking a significant change in the country’s financial technology landscape. Announced by SBI CEO Yoshitaka Kitao, this integration with the Interledger Protocol aims to enhance cross-border payments and simplify currency exchanges, as reported by Finance Magnates.
The XRP Ledger is considered an efficient, low-cost solution for international remittances, with the potential to modernize global banking systems. If adopted by 1% of Japan's $6.372 trillion banking sector, XRP’s market capitalization could rise by $63.72 billion, pushing its price to $3.50. A 10% adoption could see the price rise to $13.48, showcasing the potential impact of widespread XRP adoption.
This article was written by Tareq Sikder at www.financemagnates.com.
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