Ripple has partnered with Chainlink to enhance the adoption and utility of its stablecoin, Ripple USD (RLUSD), in the decentralized finance (DeFi) sector. Announced on January 7, the collaboration provides price feeds for RLUSD on Ethereum and the XRP Ledger, facilitating secure and cost-effective transactions for enterprise-grade DeFi applications.
The RLUSD stablecoin, pegged 1:1 to the US dollar, will now leverage tamper-proof data from Chainlink’s decentralized nodes to reduce risks of manipulation and downtime. Colin Cunningham from Chainlink Labs expressed excitement over the partnership, viewing it as a positive development for the market.
Ripple stated that the integration with Chainlink ensures high-quality, real-time market data for RLUSD, supporting smart contracts and reducing risks of price inaccuracies. This move aims to aid developers in incorporating RLUSD into various applications, aligning with Ripple’s broader vision for blockchain-based finance.
Stablecoins like RLUSD are crucial in bridging traditional finance and blockchain technology, enabling fast, low-cost payments across borders. The partnership is expected to accelerate RLUSD’s adoption in DeFi markets, with Chainlink’s data standards bolstering this transition.
Additionally, Chainlink’s recent integration with Project Diamond, a digital asset platform founded by Coinbase and regulated by the Abu Dhabi Global Market, highlights its role in providing data and enabling the full life cycle management of new tokenized assets. Chainlink continues to connect blockchains with financial systems through its crosschain Interoperability Protocol.
