Ripple has announced its adoption of the Chainlink standard to deliver high-quality pricing data for its Ripple USD (RLUSD) stablecoin within the decentralised finance (DeFi) ecosystem. RLUSD, Ripple’s enterprise-grade USD-backed stablecoin, is designed with a focus on trust, compliance, and utility, underpinned by Ripple’s extensive experience in both cryptocurrency and traditional finance. This integration with Chainlink facilitates verifiable data on the Ethereum blockchain, significantly expanding RLUSD’s use cases across the onchain economy.
Chainlink Price Feeds on Ethereum Mainnet
The partnership sees Chainlink Price Feeds now live on Ethereum’s mainnet, offering a secure and reliable source of RLUSD pricing data. This enables developers to integrate RLUSD into DeFi applications for a range of use cases, including trading and lending. Ripple’s decision to adopt Chainlink’s trusted infrastructure reflects the firm’s commitment to accelerating RLUSD’s adoption while maintaining the highest standards of reliability and security.
Chainlink, whose infrastructure has facilitated over $18 trillion in transaction value, provides RLUSD users with seamless access to high-quality offchain data. This trusted platform is already relied upon by leading financial institutions globally.
Unlocking Stablecoin Potential
Stablecoins like RLUSD offer transformative potential for financial transactions, enabling instant, low-cost settlement for both local and cross-border payments. Ripple’s RLUSD, which maintains a 1:1 peg to the US dollar, is issued on both the XRP Ledger (XRPL) and Ethereum blockchain. Its native composability with smart contract applications makes RLUSD particularly suited to DeFi ecosystems.
However, for DeFi applications to fully utilise RLUSD, they require dependable pricing data to manage risks effectively. Chainlink’s solution addresses this challenge by providing decentralised, tamper-proof data that facilitates RLUSD’s integration into DeFi markets.
Chainlink: A Trusted Data Infrastructure
According to Ripple’s press release, selection of Chainlink Price Feeds was driven by the technology’s robust features:
- High-Quality Data: Chainlink aggregates price data from hundreds of exchanges, ensuring accuracy and resilience against manipulation or outliers.
- Secure Node Operators: Independent and security-reviewed nodes ensure reliability even during periods of high network activity or infrastructure challenges.
- Decentralised Networks: Chainlink operates with decentralisation at every level, protecting against tampering or downtime.
- Reputation System: Chainlink’s transparency tools enable real-time verification of oracle network performance.
Ripple’s SVP of Stablecoin, Jack McDonald, stated: “As RLUSD scales across DeFi ecosystems, reliable and transparent pricing is essential to maintaining stability and building trust in its utility within decentralised markets. By leveraging the Chainlink standard, we bring trusted data onchain, further strengthening RLUSD’s utility across both institutional and decentralised applications.”
Johann Eid, Chief Business Officer at Chainlink Labs, added: “The adoption of tokenised assets such as stablecoins will continue to accelerate in the coming years. Having access to critical onchain data will be instrumental in supporting this growth, and we’re excited to collaborate with Ripple in expanding RLUSD’s impact.”
A New Chapter for RLUSD in DeFi
The integration of Chainlink Price Feeds marks a significant step in Ripple’s strategy to establish RLUSD as a cornerstone of the onchain economy. By addressing critical challenges in the DeFi space, Ripple and Chainlink are paving the way for greater adoption of stablecoins and their transformative potential for global finance.
