Ripple partners with Chainlink to integrate its pricing data standard, enhancing RLUSD stablecoin’s utility in DeFi on Ethereum. This collaboration enables secure RLUSD transactions like trading and lending, supported by Chainlink‘s robust infrastructure.
Chainlink is a decentralized open-source system that has teamed with Ripple Labs Inc., an American technology and blockchain-based payment company. Through the collaboration, Ripple will supply accurate pricing information for its RLUSD stablecoin by leveraging Chainlink’s standard.
The Goals of Ripple’s Chainlink Integration
The Chainlink connection will increase RLUSD’s uptake and usefulness in Decentralized Finance (DeFi) applications, according to a press statement from Ripple’s team. A trustworthy source of RLUSD pricing information on the Ethereum mainnet is the Chainlink Price Feeds, which are currently operational.
Developers can incorporate RLUSD support for trading and lending transactions into their DeFi applications thanks to this connection. Furthermore, Ripple can provide the RLUSD ecosystem with access to high-quality off-chain data by leveraging Chainlink’s proven infrastructure.
Over $18 trillion in transaction value has been made possible by the Chainlink infrastructure, which is trusted by the biggest financial institutions in the world.
According to Ripple, the integration with Chainlink guarantees that there is always access to real-time, high-quality market data on RLUSD. According to Ripple, this reliable and secure data will help smart contracts and reduce the risk of price inaccuracy.
The Chainlink integration comes after the New York Department of Financial Services (NYDFS) granted regulatory approval for RLUSD’s December launch. As of this writing, RLUSD’s market capitalization has surpassed $72 million, according to CoinGecko data.
Exchanges such as MoonPay, Uphold, Bitso, CoinMENA, and Archax offer RLUSD. The XRP Ledger (XRPL) and Ethereum blockchains are used to issue the Ripple stablecoin, which is 1:1 correlated with the US dollar.
Why Chainlink Was Selected by Ripple
Applications that use smart contracts, like DeFi, can be integrated with RLUSD natively. However, for the stablecoin to work well in DeFi applications, precise on-chain pricing data is necessary.
Because Chainlink Price Feeds satisfy the essential requirement for its RLUSD stablecoin, Ripple has selected them. The data needed to fully realize the stablecoin opportunity and hasten RLUSD’s acceptance within DeFi is provided by the Chainlink standard.
Effect of Chainlink to RLUSD Stablecoin
Chainlink’s data aggregation technology produces more accurate worldwide market values, claims Ripple. These prices are a dependable choice for Ripple since they are naturally impervious to errors or manipulation. Additionally, Chainlink nodes have a solid reputation for dependability, even in the face of high gas prices and infrastructure failures.
Additionally, Chainlink offers a suite of on-chain monitoring tools that let users independently check the performance of node operators in real time and in the past.
Ripple, among many others in the blockchain space, has integrated Chainlink’s Price Feed to power DeFi strategies. In August, omnichain money market platform Radiant Capital announced its integration of Chainlink Price Feeds on the Base mainnet.
In a similar move, CNF revealed that Morpho Blue integrated Chainlink Price Feeds for precise lending prices and flexible market alternatives.
These integrations highlight Chainlink’s resilience and credibility to financial institutions, protocols, and apps. Notably, Chainlink’s native cryptocurrency, LINK, has profited from the network’s increasing usage. LINK, currently selling at $23.2, has grown by nearly 71% in the past year.