Ripple is viewing Africa as the next rise engine for its USD-backed stablecoin RLUSD, and plans to challenge Tether's (USDT) dominance in this rapidly adopting digital assets market. On September 4, Ripple announced partnerships with three fintech companies: Chipper Cash, VALR, and Yellow Card, to promote the payment and Settlement applications of RLUSD in Africa, positioning it as a core digital payment tool in regions with inadequate financial infrastructure.
Africa Becomes the Strategic Core of Ripple Stablecoin
The stablecoin market in Africa is growing rapidly. According to research by Yellow Card, stablecoins account for as much as 43% of the cryptocurrency trading volume in Sub-Saharan Africa; the International Monetary Fund (IMF) estimates that last year, stablecoin flows in the region were equivalent to nearly 7% of GDP.
In this market, Tether's USDT has long held a dominant position, handling over half of the transaction volume. However, Ripple believes that RLUSD has the opportunity to penetrate and change the existing landscape through stronger institutional collaborations and innovative applications.
Application Scenarios and Social Impact of RLUSD
Ripple not only uses RLUSD for cross-border payments and Settlement, but also integrates it into social impact programs:
Kenya drought insurance: When satellite data shows severe water shortages, funds in the escrow account will be automatically paid to the farmers.
Flood and Storm Compensation: Utilizing smart contracts to quickly disburse funds to affected communities during extreme weather events.
These cases demonstrate the potential of stablecoins beyond trading and speculation, particularly in areas with insufficient financial infrastructure, where they can directly improve livelihoods and economic resilience.
Institutional Demand and Market Rise
Jack McDonald, Senior Vice President of Ripple's stablecoin business, stated that RLUSD has been applied in institutional scenarios such as payment solutions, tokenization projects, and as collateral in both crypto and traditional markets.
Since its launch this year, RLUSD's market capitalization has surpassed 700 million USD, continuously attracting demand from global customers and major institutional participants. Through a distribution network with local partners, Ripple hopes to quickly expand RLUSD's coverage in Africa.
Opportunities and Risks of Challenging USDT
Although USDT has a solid position in the African market, Ripple believes that the transparency, compliance, and institutional backing of RLUSD will become its competitive advantages.
The demand for stablecoins in the African market mainly comes from:
Bypass foreign exchange shortages
Reduce cross-border settlement delays
Promote international trade and remittances
However, to shake up USDT's market share, Ripple needs to invest more resources in liquidity, trading pair coverage, and user education.
Conclusion
Ripple's strategy to promote RLUSD in Africa is not only a market expansion but also a challenge to the global stablecoin landscape. With partnerships established with Chipper Cash, VALR, and Yellow Card, RLUSD is expected to demonstrate differentiated advantages in the fields of payment, Settlement, and social impact. If Ripple can continue to invest in liquidity and infrastructure development, it may truly shake USDT's dominance in Africa in the future.
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Ripple targets Africa! RLUSD aims to challenge USDT's dominance as the local stablecoin.
Ripple is viewing Africa as the next rise engine for its USD-backed stablecoin RLUSD, and plans to challenge Tether's (USDT) dominance in this rapidly adopting digital assets market. On September 4, Ripple announced partnerships with three fintech companies: Chipper Cash, VALR, and Yellow Card, to promote the payment and Settlement applications of RLUSD in Africa, positioning it as a core digital payment tool in regions with inadequate financial infrastructure.
Africa Becomes the Strategic Core of Ripple Stablecoin
The stablecoin market in Africa is growing rapidly. According to research by Yellow Card, stablecoins account for as much as 43% of the cryptocurrency trading volume in Sub-Saharan Africa; the International Monetary Fund (IMF) estimates that last year, stablecoin flows in the region were equivalent to nearly 7% of GDP.
In this market, Tether's USDT has long held a dominant position, handling over half of the transaction volume. However, Ripple believes that RLUSD has the opportunity to penetrate and change the existing landscape through stronger institutional collaborations and innovative applications.
Application Scenarios and Social Impact of RLUSD
Ripple not only uses RLUSD for cross-border payments and Settlement, but also integrates it into social impact programs:
Kenya drought insurance: When satellite data shows severe water shortages, funds in the escrow account will be automatically paid to the farmers.
Flood and Storm Compensation: Utilizing smart contracts to quickly disburse funds to affected communities during extreme weather events.
These cases demonstrate the potential of stablecoins beyond trading and speculation, particularly in areas with insufficient financial infrastructure, where they can directly improve livelihoods and economic resilience.
Institutional Demand and Market Rise
Jack McDonald, Senior Vice President of Ripple's stablecoin business, stated that RLUSD has been applied in institutional scenarios such as payment solutions, tokenization projects, and as collateral in both crypto and traditional markets.
Since its launch this year, RLUSD's market capitalization has surpassed 700 million USD, continuously attracting demand from global customers and major institutional participants. Through a distribution network with local partners, Ripple hopes to quickly expand RLUSD's coverage in Africa.
Opportunities and Risks of Challenging USDT
Although USDT has a solid position in the African market, Ripple believes that the transparency, compliance, and institutional backing of RLUSD will become its competitive advantages.
The demand for stablecoins in the African market mainly comes from:
Bypass foreign exchange shortages
Reduce cross-border settlement delays
Promote international trade and remittances
However, to shake up USDT's market share, Ripple needs to invest more resources in liquidity, trading pair coverage, and user education.
Conclusion
Ripple's strategy to promote RLUSD in Africa is not only a market expansion but also a challenge to the global stablecoin landscape. With partnerships established with Chipper Cash, VALR, and Yellow Card, RLUSD is expected to demonstrate differentiated advantages in the fields of payment, Settlement, and social impact. If Ripple can continue to invest in liquidity and infrastructure development, it may truly shake USDT's dominance in Africa in the future.