Ripple’s RLUSD enables near-instant cross-border payments while reducing remittance fees across Africa.
The RLUSD stablecoin has been approved for use across Africa to provide faster, cheaper, and easier access to the US Dollar. Furthermore, the token allows businesses and individuals to hold digital dollars safely. Once assets are tokenized through RLUSD, African users gain access to US market assets. Hence, this development aims to simplify payments, reduce costs, and support cross-border trade across the continent.
RLUSD Overview and Regulatory Framework
RLUSD is pegged 1:1 to the US Dollar and backed by cash and US Treasuries. The Bank of New York Mellon acts as the custodian for the reserves. The stablecoin is regulated by the New York Department of Financial Services, ensuring compliance and transparency. Monthly third-party audits confirm that all tokens are fully backed. RLUSD operates on both the XRP Ledger and Ethereum blockchains, increasing access to liquidity and financial applications.
—LAW DAY 161—
The RLUSD Stablecoin approved for use across Africa will give the entire continent access to the US Dollar easier, cheaper and faster than ever before.
Once assets are tokenized, from the RLUSD token, access to US market assets open up to them as well. https://t.co/siTlZ7QwnM pic.twitter.com/usZ90j1nHH
— Chad Steingraber (@ChadSteingraber) December 28, 2025
The stablecoin achieved over $700 million in market capitalization within months of launch. Its regulatory framework makes it suitable for businesses and financial institutions in Africa. Additionally, Jack McDonald, SVP of Stablecoins at Ripple, said RLUSD is now used in payments, tokenization, and trading collateral. This structure provides predictability for cross-border operations.
Addressing Payment Challenges and Currency Stability
Cross-border payments in Africa often have high fees exceeding 8%, causing delays for families and businesses. RLUSD transactions settle within seconds, offering a faster alternative to traditional banking systems. The token also reduces the cost of sending remittances, which is essential for households relying on international transfers.
Currency instability in countries like Nigeria makes holding digital dollars appealing. Local currencies can fluctuate, eroding purchasing power. RLUSD provides a stable store of value, allowing businesses and individuals to plan expenses more efficiently. Thus, this stability supports SMEs in maintaining consistent salaries and supplier payments.
Integration with African Financial Platforms
Platforms such as Chipper Cash, Yellow Card, and VALR have integrated RLUSD into their systems. This enables businesses and individuals to access digital dollars directly through existing platforms. Consequently, the adoption facilitates treasury management, cross-border payments, and digital trading.
Chris Maurice, CEO of Yellow Card, noted that customers require stable digital assets for secure cross-border payments and financial operations. Essentially, RLUSD’s compliance with NYDFS standards ensures trust and transparency. These integrations also expand access to tokenized US market assets through RLUSD.
Related Readings: Ripple News: Bitpanda Lists Ripple’s RLUSD Stablecoin to Expand Global Payment Reach
Use Cases Across Businesses and Commerce
RLUSD is being used for SME treasury management to protect against currency volatility. Businesses can hold reserves in digital dollars and manage budgets effectively. Nonetheless, merchant payments and e-commerce platforms also use RLUSD for international transactions.
The stablecoin is applied in tokenized asset trading and insurance programs. For example, Mercy Corps Ventures used RLUSD to automate climate insurance payouts in Kenya. Subsequently, fast, low-cost transactions make RLUSD practical for both enterprises and individuals. These features make it easier to conduct trade and manage financial operations across Africa.