In a recent announcement on Ripple’s X platform, the company announced its partnership with Chainlink to enhance the onchain utility of its newly-launched stablecoin Ripple RLUSD. Ripple aims to provide high quality and verifiable pricing data for RLUSD, enabling its seamless adoption across the Decentralized Finance (DeFi) application with this integration.
RLUSD is pegged 1:1 to the U.S. dollar, issued on the XRP Ledger (XRPL) and Ethereum, making it a natively composable with smart contract with various use cases such as trading, lending and other DeFi use cases.
Stablecoins like RLUSD provide opportunity for financial transactions enabling low-cost, instant settlements for both local and cross-border payments. However, DeFi applications require reliable pricing data to manage risks effectively which is where Chainlink’s infrastructure comes in.
Why Chainlink?
From the announcement made, Ripple chose Chainlink because it’s a super reliable way to get accurate prices for its digital dollar. This helps keep things fair and trustworthy in online money systems. Chainlink collects data from premium aggregators and securing it through independent, Sybil-resistant nodes, ensuring a transparent market price.
Driving Ripple’s RLUSD Adoption in DeFi
With Chainlink’s Price Feed now live on Ethereum, DeFi developers can integrate RLUSD into their application, developing new use cases across decentralized markets. Jack McDonald, SVP, Stablecoin at Ripple highlights the importance of building trust and stability within the community.
Johann Eid, Chief Business Officer at Chainlink Labs on the other hand commented that Chainlink is thrilled to be working with cross-border payment service provider as a standard of verifiable data and anticipates increased adoption of stablecoins in the coming years.
At press time, the price of the token stands at $2.42 with a dip of 0.4% in the last 24 hours. With this announcement there are chances of a slight uptick in price of the XRP token.
Moreover, Chainlink’s token $LINK has seen a surge of 8.8% in the past week and along with XRP, the price of $LINK token is also expected to rise.
Also Read: Grayscale Highlights BTC, XRP And LTC As Store Of Value
