Ripple has announced its adoption of the Chainlink standard to provide “high-quality pricing data” for its Ripple USD (RLUSD) stablecoin.
This move aims to enhance the utility of RLUSD within the on-chain economy by leveraging the verifiable data capabilities of Chainlink on the Ethereum blockchain.
Details of the Integration
The integration of Chainlink’s Price Feeds has gone live, offering RLUSD pricing data on the Ethereum mainnet. This allows developers to integrate RLUSD into their decentralized finance (DeFi) applications for various use cases such as trading and lending.
“Stablecoins present a significant opportunity to redefine the way businesses and consumers engage in financial transactions by enabling low cost, instant settlement of local and cross-border payment transactions,” Ripple stated.
However, to support RLUSD as an asset, many DeFi applications require a reliable source of price data to manage risks.
Benefits for DeFi Applications
By adopting Chainlink’s standard, Ripple is addressing these challenges, providing DeFi applications with the necessary high-quality, reliable pricing data.
This partnership comes at a time when stablecoins are gaining traction, particularly after the U.S. election of a pro-crypto president, Donald Trump, which has led to an optimistic environment for cryptocurrency adoption and innovation.
Impact on the Broader Financial Ecosystem
The adoption of Chainlink by Ripple signifies a commitment to improving the transparency and reliability of digital assets, particularly stablecoins, in the DeFi space.
This move not only bolsters the utility of RLUSD but also aligns with broader trends of digital transformation within financial services, where blockchain and cryptocurrencies are seen as foundational elements for global finance.
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