Ripple Collaborates with Chainlink So RLUSD Can Be Used for DeFi

Bittime - Ripple's stablecoin, RLUSD, is getting a significant boost with a partnership with oracle network Chainlink. The goal of this collaboration is to bring RLUSD into the decentralized finance (DeFi) ecosystem. 

With more than $18 trillion in transaction value already facilitated across institutional markets, this partnership will enable decentralized applications to access reliable price feeds, expanding the use of Ripple's stablecoin for a variety of financial services such as trading and lending.

This move potentially positions RLUSD to compete in the growing institutional DeFi sector, where accurate price feeds and robust infrastructure are critical for large-scale adoption. 

Jack McDonald, SVP Stablecoins at Ripple, stated that “as RLUSD expands across the DeFi ecosystem, reliable and transparent pricing is critical to maintaining stability and building confidence in its utility in decentralized markets.

Also read: XRP Price Prediction for Next Week: Pay Attention to This Support Point!

Increasing Access to Quality Pricing Data

The integration between Ripple and Chainlink addresses a critical barrier to institutional DeFi adoption, namely the need for high-quality, tamper-proof price data. 

Chainlink's infrastructure collects price information from hundreds of exchanges, weighted by volume and filtered to avoid manipulation. This ensures that the data used in DeFi transactions is accurate and reliable.

Johann Eid, Chief Business Officer at Chainlink Labs, added that “stablecoin adoption will continue to increase in the coming years.” With access to critical on-chain data, this adoption process will be further accelerated. 

This partnership not only increases the reliability of RLUSD, but also strengthens Ripple's position in the increasingly competitive DeFi ecosystem.

RLUSD: Stablecoin Operating on XRP Ledger and Ethereum

Launched amidst a surge in XRP prices last December, RLUSD operates on the XRP Ledger and Ethereum blockchain. This stablecoin is designed to maintain a 1:1 value with the US dollar, providing the stability needed in financial transactions. 

Ripple claims that this stablecoin architecture emphasizes enterprise compliance while enabling composability, meaning RLUSD can connect and build on top of other decentralized applications.

With these capabilities, RLUSD can serve as a bridge between digital assets and DeFi applications, allowing users to leverage the full potential of the blockchain ecosystem. This also opens up new opportunities for users to participate in various financial services offered by DeFi platforms.

Also read: Ripple Coin Price (XRP) Predicted to Rise to $11, Beware of Missing the Train!

Chainlink Reputation System for Risk Management

Chainlink's reputation system provides an on-chain monitoring tool that allows users to independently verify the performance of node operators and oracle networks. This is an important consideration for institutional risk management, as it provides users with transparency and confidence in using the data provided.

With this partnership, Ripple and Chainlink seek to create a more secure and efficient ecosystem for the use of RLUSD in DeFi. With support from Chainlink infrastructure, Ripple XRP and stablecoin RLUSD can strengthen their position in the digital asset market, providing better solutions for users and investors around the world.

FAQ

What is RLUSD and how is it related to Ripple?

RLUSD is a stablecoin developed by Ripple, designed to maintain 1:1 value with the US dollar. The partnership with Chainlink aims to increase access to reliable price data, enabling RLUSD to be used in the decentralized finance (DeFi) ecosystem.

Why is the partnership between Ripple and Chainlink important?

This partnership is important because it addresses the need for high-quality, tamper-proof price data in the DeFi sector. By using Chainlink infrastructure, RLUSD can offer accurate price feeds, increasing trust and adoption among users.

Where does RLUSD operate?

RLUSD operates on the XRP Ledger and Ethereum blockchain, enabling integration with various decentralized applications and expanding its use in financial services such as trading and lending.

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Reference

decrypt.co, Ripple Taps Chainlink as it Pushes for DeFi Expansion with RLUSD Stablecoin, accessed January 8, 2025.

Author: AWW