Ripple has partnered with Chainlink to extend the utility of its stablecoin, Ripple USD (RLUSD), deeper within DeFi. The objective here will be to provide high-quality pricing data of RLUSD on Ethereum as taken from Chainlink’s tried-and-tested Oracle infrastructure.
Ripple, tapping into years of financial and blockchain experience, introduced RLUSD as an enterprise-grade stablecoin. It’s designed to hold value at a 1:1 parity with the United States dollar while granting functionality for instant settlements, both domestic and cross-border.
The stablecoin, issued on both the XRP Ledger and Ethereum, works well with smart contract applications in DeFi. Chainlink Price Feeds now provides robust RLUSD price data on Ethereum, which allows developers to integrate the RLUSD into their DeFi applications for trading, lending, and other financial uses.
The integration secures tamper-proof price data provided by Chainlink’s decentralized oracle network, which brings together financial data from multiple trading environments.
Ripple enhances RLUSD’s utility with Chainlink Oracle technology
Stablecoins, like RLUSD, represent a transformative opportunity to bring down both transaction costs and settlement times for international finance. In partnership, Ripple and Chainlink solve one of the most significant challenges to stablecoin adoption thus far: how to access consistent, accurate pricing data while leveraging them in DeFi applications.
The Chainlink infrastructure overcomes this by providing decentralized, volume-weighted price feeds from premium sources. Thus, the network’s features make it a very attractive option for Ripple.
This decentralized architecture, with its node operators securely recording all activity and having a reputation system, ensures resilience even in poor conditions. These attributes facilitate a reasonably priced market for their token, which also increases the credibility of RLUSD as a compliant DeFi asset.
Adding Chainlink’s oracle technology will further strengthen RLUSD’s position in the on-chain economy. Positioning RLUSD for the growing demand for stablecoin-based applications drives innovation in decentralized finance and further development of Ripple’s presence in the digital asset market.
