Ripple’s RLUSD stablecoin gains traction as Chainlink price feeds enable secure, real-time DeFi transactions on Ethereum and the XRP Ledger. Ripple, a blockchain-based payment protocol, has teamed up with Chainlink, a decentralized oracle network, to increase the popularity and usage of its Ripple USD (RLUSD) stablecoin in DeFi apps.

The agreement, announced on January 7, will provide price feeds for RLUSD on Ethereum and the XRP Ledger, to enable cost-effective transactions and DeFi use cases for the enterprise-grade stablecoin.

RLUSD is pegged to the US dollar and will receive tamper-proof and reliable data from Chainlink via decentralized nodes. The integration is intended to lessen the risks of manipulation and downtime. Colin Cunningham, Chainlink Labs’ head of tokenization and partnerships, told Cointelegraph that the integration is “a great signal for the market” and that the team is thrilled to support the RLUSD debut.

Ripple’s RLUSD

The RLUSD stablecoin is 1:1 backed by the US dollar and is intended to enable cost-effective and secure transactions for payments, trading, lending, and other DeFi applications. The company said that the connection with Chainlink, a major component of Ripple’s vision for blockchain-based finance, ensures that real-time high-quality market data on the stablecoin is available around the clock. 

The company also stated that having consistent data will enhance smart contracts, reduce manipulation and pricing inaccuracy problems, and assist developers in incorporating RLUSD into their applications. 

Defi implications 

Stablecoins, such as RLUSD, bridge traditional banking and blockchain technology, allowing for rapid, low-cost, borderless transfers. These assets are essential in DeFi, acting as a store of value, a buffer against market volatility, and a means of trade.

The partnership between Ripple and Chainlink aims to boost the adoption of RLUSD by helping it gain access to DeFi markets. 

Throughout the ups and downs of the crypto markets over the years, initiatives like Ripple have endured an incredible amount of change, according to Cunningham. With the launch of RLUSD, the stablecoin and tokenized asset sectors continue to lead the blockchain industry forward. 

Chainlink integration with Coinbase

Chainlink will also interface with Project Diamond, the worldwide institution-focused digital asset network developed by cryptocurrency exchange Coinbase, on December 10, 2024.

The Financial Services Regulatory Authority of the Abu Dhabi Global Market regulates Project Diamond’s interface with Chainlink, which provides data and allows for complete lifecycle management of newly tokenized assets. Chainlink’s cross-chain Interoperability Protocol connects public and private blockchains to existing financial systems while also providing data. 

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