Ripple's enterprise stablecoin, RLUSD, is getting a boost with Chainlink's battle-tested oracle network as the company aims to bring RLUSD to decentralized finance.
After facilitating over $18 trillion in transaction value across institutional markets, Chainlink's partnership with Ripple would enable decentralized apps to access its price feeds, expanding the use of Ripple's stablecoin for trading, lending, and other financial services.
The move could position RLUSD to compete in the growing institutional DeFi sector, where reliable price feeds and robust infrastructure are essential for large-scale adoption.
"As RLUSD scales across DeFi ecosystems, reliable and transparent pricing is essential to maintaining stability and building trust in its utility within decentralized markets," Jack McDonald, SVP of Stablecoin at Ripple, said in a statement shared with Decrypt.
The integration addresses a crucial barrier to institutional DeFi adoption—the need for high-quality, tamper-resistant price data.
Chainlink's infrastructure sources pricing information from hundreds of exchanges, weighted by volume and filtered for manipulation attempts.
Stablecoin adoption will continue “to accelerate in the coming years,” Johann Eid, Chief Business Officer at Chainlink Labs, said in a statement. “Having access to critical onchain data” would speed up this process, Eid claims
Launched amid a surge in XRP prices in December last year, RLUSD operates on both the XRP Ledger and Ethereum blockchain, designed to maintain a 1:1 value with the U.S. dollar.
Ripple claims that stablecoin's architecture emphasizes enterprise compliance while enabling composability, which refers to its ability to connect with and build on top of other decentralized apps.
Chainlink's reputation system, meanwhile, provides on-chain monitoring tools that allow users to independently verify the performance of node operators and oracle networks, a key consideration for institutional risk management.
Edited by Sebastian Sinclair