KEY TAKEAWAYS
- Ripple adopts Chainlink’s infrastructure to enhance RLUSD stablecoin utility on the Ethereum blockchain.
- Chainlink Price Feeds provide secure and reliable RLUSD pricing data for DeFi applications.
- Stablecoins like RLUSD offer opportunities for low-cost, instant financial transactions.
- Chainlink’s decentralized oracle network ensures accurate and tamper-proof market data.
Ripple has announced its adoption of the Chainlink standard to bring high-quality pricing data for its Ripple USD (RLUSD) stablecoin onchain. This move aims to enhance the utility of RLUSD across the onchain economy by leveraging Chainlink’s infrastructure on the Ethereum blockchain. The RLUSD stablecoin, which is USD-denominated, is designed with trust, utility, and compliance at its core, backed by Ripple’s extensive experience in the crypto and financial sectors.
Chainlink Price Feeds are now live, providing a secure and reliable source of RLUSD pricing data on the Ethereum mainnet. This enables developers to integrate RLUSD into their decentralized finance (DeFi) applications for various use cases, including trading and lending. By adopting the Chainlink standard, Ripple ensures that the RLUSD ecosystem has access to high-quality offchain data through Chainlink’s proven infrastructure, which has facilitated over $18 trillion in transaction value.
The Stablecoin Opportunity
Stablecoins like RLUSD present significant opportunities to transform financial transactions by enabling low-cost, instant settlement of both local and cross-border payments. Ripple’s RLUSD, designed to maintain a 1:1 value with the US dollar, is issued on the XRP Ledger (XRPL) and Ethereum blockchains. It is natively compatible with smart contract applications commonly used in DeFi.
To support RLUSD as an asset, DeFi applications require a reliable source of price data to manage risks effectively. The Chainlink standard provides a unified solution, offering the necessary data to accelerate RLUSD’s adoption within DeFi and fully realize the potential of stablecoins.
Enabling Secure Onchain Markets With Chainlink Price Feeds
For secure onchain markets around RLUSD, DeFi applications need access to fresh asset prices supplied directly onchain in a reliable and tamper-proof manner. Chainlink Price Feeds offer a decentralized oracle network infrastructure to fetch, aggregate, and deliver financial market data onto the Ethereum blockchain. This ensures fair market asset prices that reflect a volume-weighted average from all trading environments, both onchain and offchain.
Ripple selected Chainlink Price Feeds for their high-quality data, secure node operators, decentralized network, and robust reputation system. Chainlink sources data from numerous premium data aggregators, ensuring price data is aggregated from hundreds of exchanges and cleaned of outliers and wash trading. This model generates precise global market prices resistant to inaccuracies or manipulation.
Johann Eid, Chief Business Officer at Chainlink Labs, stated, “We’re thrilled to be working with Ripple on accelerating the adoption of their recently launched RLUSD stablecoin through the adoption of the Chainlink standard for verifiable data.” Jack McDonald, SVP of Stablecoin at Ripple, added, “As RLUSD scales across DeFi ecosystems, reliable and transparent pricing is essential to maintaining stability and building trust in its utility within decentralized markets.”
The full announcement can be found here.
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