Ripple has teamed up with Chainlink to enhance the adoption and functionality of its stablecoin, Ripple USD (RLUSD), in the decentralized finance (DeFi) space. The integration of Chainlink’s advanced price data technology with RLUSD aims to make RLUSD a reliable and useful tool for various DeFi applications, from trading to lending.
Ripple is a technology company offering fast, low-cost, and secure cross-border payment solutions using blockchain technology. It is renowned for RippleNet, its digital payment protocol, which connects financial institutions globally to facilitate real-time money transfers.
Ripple leverages its cryptocurrency, XRP, as a bridge currency to ensure liquidity in transactions. Additionally, it has introduced RLUSD for the Web3 space. RLUSD is a USD-backed stablecoin designed with a focus on trust, utility, and regulatory compliance.
Chainlink is a blockchain-based platform that links smart contracts to real-world data and systems. It functions as a decentralized oracle network, allowing blockchains to securely access off-chain data—like market prices, weather information, and event outcomes—in a tamper-proof manner. This ensures smart contracts execute reliably, based on accurate and up-to-date information.
Stablecoins like RLUSD are revolutionizing global finance by providing fast and low-cost transaction options for both local and international payments. Ripple views RLUSD as a powerful tool to simplify and modernize financial interactions. With its presence on the Ethereum blockchain and the XRP Ledger, RLUSD is compatible with smart contracts and can seamlessly integrate with DeFi applications.
Read also: Ripple CEO admits company’s mistake in not engaging regulators earlier
Johann Eid, Chief Business Officer at Chainlink Labs, expressed excitement about collaborating with Ripple. He noted that stablecoins like RLUSD are pivotal to the future of finance, with reliable data being essential for their success.
Jack McDonald, Ripple’s SVP of Stablecoins, highlighted the importance of transparent pricing in ensuring RLUSD’s stability and trustworthiness, especially as it expands in DeFi markets.
