Ripple has integrated Chainlink’s infrastructure to provide verifiable price data for its USD-denominated stablecoin, RLUSD, on the Ethereum blockchain.
RLUSD is designed to maintain parity with the US dollar and is positioned as a stable currency for professional use, emphasizing trust, utility and regulatory compliance. This integration aims to improve the usability of RLUSD within the decentralized finance (DeFi) ecosystem.
Chainlink price feeds are now operational on the Ethereum mainnet, allowing developers to integrate RLUSD into various DeFi applications, including trading and lending platforms. The Chainlink standard provides a decentralized solution to deliver secure, real-time asset pricing data, essential to supporting the adoption of RLUSD in on-chain markets.
Stablecoin adoption and DeFi integration
Stablecoins such as RLUSD aim to provide faster and more cost-effective cross-border and local transaction opportunities. Ripple’s RLUSD, issued on both the XRP Ledger and Ethereum blockchain, is natively compatible with smart contract-based applications. However, to facilitate broader adoption of DeFi, developers need reliable pricing data to manage risks and support various financial use cases.
The integration of Chainlink’s decentralized oracle network ensures that RLUSD can mine high-quality off-chain data, providing the infrastructure needed to support secure and scalable DeFi applications. Chainlink’s price feeds aggregate market data from multiple sources, offering volume-weighted average prices that are resistant to manipulation.
Ripple chose the Chainlink solution after evaluating its features, including:
- Data quality: Aggregated from numerous premium sources and filtered for accuracy.
- Secure nodes: operated by independent and security-controlled entities.
- Decentralization: Mitigates the risks of single points of failure.
- Transparency: offers data integrity monitoring and verification tools.
Chainlink Labs officials spoke about their collaboration with Ripple to expand RLUSD adoption and how this highlights the growing importance of trusted on-chain data for tokenized assets such as stablecoins.
In turn, Ripple representatives emphasized that accurate pricing is vital to the role of RLUSD in DeFi markets. Using Chainlink’s reliable data feeds, the company aims to strengthen the utility of RLUSD for institutional and decentralized applications.
