Ripple, the prominent US-based crypto infrastructure company, has announced its entry into the African market with the launch of its dollar-backed stablecoin, Ripple USD (RLUSD). This development comes through strategic partnerships with notable fintech startups, including VALR, Yellow Card, and Chipper Cash.
The stablecoin will be available on VALR, recognized as South Africa’s largest cryptocurrency exchange, and will also be offered via Yellow Card’s extensive pan-African payments platform. Additionally, it will be integrated into Chipper Cash’s cross-border payments solution, providing retail users, businesses, and institutions access to RLUSD for various financial activities such as remittances, treasury operations, and trading.
According to Chainalysis, Sub-Saharan Africa processed approximately $54 billion in stablecoin transactions in 2024, accounting for nearly half of the region’s crypto activity. This significant growth has positioned African markets as crucial for stablecoin issuers looking to enhance their distribution efforts. Major global players such as Tether, which issues the largest stablecoin USDT, and Circle, responsible for USDC, have already aimed to establish control over the payment infrastructure that supports stablecoin transfers. Ripple’s initiative to launch RLUSD in Africa is seen as a strategic move to penetrate this emerging market, particularly in countries like Nigeria, where USDT is widely used as a hedge against currency devaluation.
Jack McDonald, Senior Vice President of stablecoins at Ripple, noted the swift uptake of RLUSD in enterprise financial applications ranging from payments and tokenization to collateral use in both crypto and traditional trading markets. He mentioned ongoing demand from customers and key institutional players globally, expressing excitement about the stablecoin’s introduction to Africa through local partnerships.
Initially launched in December 2024 as a compliance-first stablecoin, RLUSD is issued by a New York trust company regulated by the New York Department of Financial Services (NYDFS). To date, the stablecoin has achieved a market capitalization of over $700 million, although it represents a modest share (0.24%) of the $297 billion global stablecoin market, which continues to be dominated by USDT, USDC, and newer entrants like Ethena’s yield-bearing stablecoin, USDe.
Moreover, Ripple is not solely focused on trading and payments; the company is also exploring humanitarian and climate applications for RLUSD. In Kenya, Ripple is collaborating with Mercy Corps Ventures, the impact investment branch of the international NGO Mercy Corps, to pilot projects aimed at utilizing the stablecoin for insurance payouts to farmers impacted by droughts and floods.
With RLUSD already accessible worldwide on platforms such as Kraken, Gemini, and Bitstamp, and integrated into Ripple’s cross-border payment services, the company aims to broaden the adoption of a regulatory-compliant digital dollar. By providing fintechs and startups with robust infrastructure, Ripple seeks to facilitate financial transactions across Africa, leveraging the potential of its stablecoin to address regional economic needs.
