As safe, real-time DeFi transactions on Ethereum and the XRP Ledger are made possible by Chainlink’s price feeds, Ripple’s RLUSD stablecoin gains momentum.
To increase the uptake and usefulness of its Ripple USD (RLUSD) stablecoin in decentralized finance (DeFi) applications, the blockchain-based payment system Ripple has teamed up with Chainlink, a decentralized Oracle network.
To facilitate cost-effective transactions and DeFi use cases for the enterprise-grade stablecoin, the partnership, announced on January 7, will supply price feeds for RLUSD on Ethereum and the XRP Ledger.
Chainlink’s decentralized nodes will provide RLUSD with accurate and tamper-proof data based on the US dollar. The integration is intended to lower the possibility of outage or manipulation.
The integration is “a great signal for the market,” according to Colin Cunningham, head of tokenization and alliances at Chainlink Labs, who told Cointelegraph that the team is thrilled to support the RLUSD debut.
The RLUSD of Ripple
The US dollar provides a 1:1 backing for the RLUSD stablecoin, intended to enable safe and affordable transactions for trading, lending, payments, and other DeFi use cases.
The connection with Chainlink guarantees real-time, high-quality market data on the stablecoin is accessible 24/7, which is a crucial part of Ripple’s vision for blockchain-based banking, the company said.
According to the business, this consistent data will enable developers to integrate RLUSD into their apps, support smart contracts, and reduce the danger of price inaccuracy or manipulation.
Implications of DeFi
Stablecoins like RLUSD allow for quick, inexpensive, and international transfers, bridging the gap between blockchain technology and traditional finance.
These assets are essential to DeFi because they act as a medium of exchange, a store of value, and a hedge against market volatility.
To accelerate the adoption of RLUSD, Ripple’s adoption of Chainlink’s data standards facilitates its entry into DeFi markets.
Projects like Ripple have “stood the test of time and weathered an unbelievable amount of change over the ups and downs of the crypto markets over the years,” according to Cunningham.
“The launch of RLUSD is continued affirmation of the stablecoin and tokenized asset sectors continuing to lead the blockchain industry forward.”
Coinbase integration with Chainlink
Additionally, on December 10, 2024, Chainlink merged with Project Diamond, a cryptocurrency exchange’s digital asset network for international organizations established by Coinbase.
Project Diamond’s interface with Chainlink, overseen by the Abu Dhabi Global Market’s Financial Services Regulatory Authority, offers data and permits complete lifecycle management of recently tokenized assets.
Chainlink uses its cross-chain Interoperability Protocol to link public and private blockchains with current financial systems and supply data.