Ripple, a payment protocol based on blockchain technology, has partnered with Chainlink, a decentralized oracle network, to enhance the adoption and utility of Ripple USD (RLUSD) stablecoin in DeFi applications.
Ripple and Chainlink Partnership
An announcement on January 7 stated that this partnership provides price data sources for RLUSD on Ethereum and XRP Ledger, aimed at supporting cost-effective transactions and DeFi applications for enterprise-grade stablecoins.
RLUSD is pegged to the US Dollar and will receive accurate, tamper-proof data from Chainlink through decentralized nodes. This integration is designed to reduce risks of manipulation or disruption.
Colin Cunningham, head of Tokenization and Alliances at Chainlink Labs, told TinTucBitcoin that the integration is 'a positive signal for the market' and the team is excited to support the launch of RLUSD.
Ripple's RLUSD
The RLUSD stablecoin is pegged 1:1 to the US Dollar and is designed to support safe, cost-effective transactions in payments, trading, lending, and other DeFi applications.
As a key component of the blockchain-based financial vision, integration with Chainlink ensures high-quality, real-time market data for always-available stablecoins, Ripple said.
This consistent data will support smart contracts, minimize the risk of manipulation or value discrepancies, and help developers integrate RLUSD into their applications, the company added.
The Impact of DeFi
Stablecoins like RLUSD connect traditional finance and blockchain technology by enabling fast, low-cost, borderless payments.
These assets play a critical role in DeFi, serving as a store of value, addressing market volatility, and acting as a medium of exchange.
Ripple's acceptance of Chainlink's data standards supports its move into the DeFi market, with the partnership expected to accelerate the adoption of RLUSD.
Cunningham stated that projects like Ripple have 'demonstrated resilience and weathered significant changes in the cryptocurrency market over the years.'
"The launch of RLUSD reaffirms the leadership of the stablecoin and crypto asset sectors in driving the blockchain industry forward."
Chainlink Integration with Coinbase
On December 10, 2024, Chainlink also integrated with Project Diamond, a digital asset platform for global organizations established by the cryptocurrency exchange Coinbase.
Managed by the Financial Services Regulatory Authority of Abu Dhabi Global Market, Project Diamond's integration with Chainlink provides data and enables full lifecycle management of newly tokenized assets.
Chainlink provides data and connects public and private blockchains with existing financial systems through its Cross-Chain Interaction Protocol.