Ripple partners with Chainlink to boost RLUSD stablecoin utility in DeFi

Ripple has partnered with Chainlink to enhance the utility and adoption of its Ripple USD (RLUSD) stablecoin in decentralized finance (DeFi) markets.

This collaboration, announced on January 7, 2025, will provide RLUSD with tamper-proof and accurate price feeds on Ethereum and the XRP Ledger.

The adoption of the Chainlink standard will enhance the utility and accessibility of its Ripple USD (RLUSD) stablecoin within the decentralized finance (DeFi) ecosystem.

By leveraging Chainlink’s reliable pricing data infrastructure, Ripple aims to drive greater adoption of RLUSD as a trusted, USD-denominated stablecoin backed by Ripple’s extensive experience in blockchain and traditional finance.

Chainlink Price Feeds Now Live for RLUSD on Ethereum

The integration of Chainlink Price Feeds on the Ethereum mainnet allows developers to access accurate and secure RLUSD pricing data. This enables the incorporation of RLUSD into DeFi applications for use cases such as trading, lending, and other financial services.

By adopting Chainlink’s infrastructure, Ripple provides the RLUSD ecosystem with high-quality offchain data delivered onchain, utilizing a decentralized oracle network that has facilitated over $18 trillion in transaction value globally. Chainlink’s reputation for reliability and scalability makes it a natural choice for this collaboration.

Stablecoins: Revolutionizing Financial Transactions

Stablecoins like RLUSD offer a transformative opportunity to streamline financial transactions with low-cost, instant settlement for local and cross-border payments.

Ripple launched RLUSD with a 1:1 peg to the US dollar, issuing it on the XRP Ledger (XRPL) and Ethereum blockchain. This design ensures native compatibility with DeFi smart contract applications.

To support RLUSD adoption in DeFi, Ripple identified the need for high-quality, decentralized pricing data. Chainlink’s infrastructure delivers a unified solution to address these challenges and accelerate RLUSD’s integration within DeFi.

Secure and Reliable Onchain Markets

DeFi applications require robust, tamper-proof data to manage risks effectively. Chainlink Price Feeds provide:

• High-Quality Data: Aggregated from premium sources across hundreds of exchanges, ensuring accuracy and resilience against manipulation.
• Secure Node Operators: Operated by independent, security-reviewed teams with proven reliability.
• Decentralized Networks: Strong safeguards against tampering and downtime at all levels of the data infrastructure.
• Reputation System: Onchain tools for real-time and historical performance verification.

This trusted pricing infrastructure ensures fair market valuations and reinforces RLUSD’s position in decentralized markets.

Strategic Insights from Ripple and Chainlink

Johann Eid, Chief Business Officer at Chainlink Labs, expressed enthusiasm about the collaboration:
“The adoption of tokenized assets like stablecoins is accelerating, and access to reliable onchain data will play a critical role. We’re thrilled to work with Ripple to advance RLUSD adoption through Chainlink’s infrastructure.”

Jack McDonald, SVP of Stablecoin at Ripple, highlighted the importance of pricing transparency:
“Reliable data is essential for RLUSD’s success in decentralized markets. Chainlink’s trusted infrastructure strengthens RLUSD’s utility across institutional and DeFi applications.”

With this strategic partnership, Ripple and Chainlink are paving the way for broader adoption of stablecoins in DeFi, furthering innovation in blockchain-based financial ecosystems.

The integration aims to support cost-effective transactions and various DeFi use cases, such as trading and lending.

By leveraging Chainlink's decentralized oracle network, RLUSD will benefit from real-time, high-quality market data, reducing risks of manipulation or downtime.