Ripple teams up with Chainlink to expand RLUSD in DeFi markets.

Ripple, a blockchain-based payment network, has partnered with Chainlink, a decentralized oracle network, to drive the adoption and utility of Ripple USD (RLUSD) in decentralized finance (DeFi) applications.

Announced on Jan. 7, the partnership introduces Chainlink’s price feeds for RLUSD on Ethereum and the XRP Ledger, facilitating cost-efficient transactions and DeFi use cases for the enterprise-grade stablecoin.

Pegged to the US dollar, RLUSD will benefit from tamper-proof and accurate data provided by Chainlink’s decentralized nodes, reducing risks of manipulation or downtime. Colin Cunningham, Chainlink Labs’ head of tokenization and alliances, called the collaboration “a great signal for the market” and expressed enthusiasm for supporting the RLUSD launch.

Designed to deliver secure and cost-effective solutions for payments, trading, lending, and other DeFi applications, RLUSD is fully backed 1:1 by the US dollar. 

Ripple highlighted that Chainlink’s integration ensures high-quality, real-time market data for the stablecoin, enabling developers to incorporate RLUSD into their applications while mitigating risks of price inaccuracy or manipulation.

As a bridge between traditional finance and blockchain, RLUSD enables fast, low-cost, and borderless payments, serving as a store of value, a hedge against volatility, and a medium of exchange in DeFi markets. The partnership with Chainlink strengthens Ripple’s move into DeFi, accelerating RLUSD adoption and expanding its utility.

Cunningham praised Ripple for its resilience in navigating the evolving crypto landscape, stating that the RLUSD launch reaffirms the stablecoin and tokenized asset sectors as leaders in blockchain innovation.

In a related development, on Dec. 10, 2024, Chainlink partnered with Project Diamond, a digital asset platform for global institutions founded by Coinbase. 

Regulated by the Financial Services Regulatory Authority of the Abu Dhabi Global Market, this integration enables full lifecycle management of tokenized assets and reinforces Chainlink’s role in connecting public and private blockchains with traditional financial systems through its Cross-Chain Interoperability Protocol.