Ripple partners with Chainlink to strengthen RLUSD in DeFi markets

Ripple (CRYPTO:XRP) has teamed up with Chainlink (CRYPTO:LINK) to enhance the adoption and functionality of its RLUSD (CRYPTO:RLSUD) stablecoin within the decentralised finance (DeFi) sector.

The partnership, announced on January 7, aims to integrate Chainlink’s decentralised price feeds for RLUSD on both Ethereum and the XRP Ledger.

This collaboration is set to support secure and cost-effective transactions while improving RLUSD’s utility in DeFi applications.

RLUSD, which is pegged 1:1 to the US dollar, will benefit from Chainlink’s tamper-proof and accurate data.

By leveraging Chainlink’s decentralised oracle network, the integration aims to reduce the risks of price manipulation and downtime, ensuring real-time, reliable data for DeFi transactions.

Colin Cunningham, Head of Tokenisation and Alliances at Chainlink Labs, expressed enthusiasm about the partnership, calling it "a great signal for the market."

He added that the Chainlink team is excited to support the RLUSD launch, highlighting the positive impact the collaboration could have on the DeFi space.

The RLUSD stablecoin is designed to facilitate secure, low-cost transactions in payments, trading, and lending within DeFi ecosystems.

With Chainlink’s price feeds, Ripple ensures that high-quality, real-time market data will be available around the clock, which is crucial for mitigating risks associated with price inaccuracies and manipulation.

This data integration will also aid developers in incorporating RLUSD into various decentralised applications.

Stablecoins like RLUSD play a pivotal role in bridging traditional finance with blockchain technology.

They are essential in DeFi for providing a store of value, acting as a hedge against market volatility, and enabling borderless payments.

The integration of Chainlink’s oracle network supports Ripple’s push into DeFi markets, positioning RLUSD for accelerated adoption and greater utility.

Cunningham emphasised that projects like Ripple have “stood the test of time” despite market fluctuations, underscoring the continued growth of the stablecoin and tokenised asset sectors.

At the time of reporting, the XRP (XRP) price was $2.33, and the Chainlink (LINK) price was $21.16.