Ripple, the global digital asset infrastructure provider for financial services, is joining forces with Chainlink, a provider of infrastructure powering the movement of tokenised real-world assets.
Through the new partnership, Ripple will leverage the Chainlink standard to bring pricing data around its USD-denominated stablecoin, Ripple USD (RLUSD), onchain. By adopting the Chainlink standard for verifiable data on the Ethereum blockchain, Ripple hopes to bolster the utility of RLUSD across the onchain economy.
To support RLUSD as an asset, many DeFi applications first require a high-quality, reliable source of price data to manage risks.
By providing a reliable source of RLUSD pricing data on Ethereum mainnet, Chainlink Price Feeds are enabling developers to integrate support for RLUSD into their DeFi applications for use cases such as trading, lending, and more.
With the Chainlink standard, Ripple will provide the RLUSD ecosystem with access to offchain data. Chainlink’s infrastructure has enabled over $18trillion in transaction value prior to its latest partnership with Ripple.
“We’re thrilled to be working with Ripple on accelerating the adoption of their recently launched RLUSD stablecoin through the adoption of the Chainlink standard for verifiable data,” explained Johann Eid, chief business officer at Chainlink Labs. “The adoption of tokenised assets such as stablecoins will continue to accelerate in the coming years and having access to critical onchain data will accelerate the process.”
Backing stablecoin popularity
Initially introduced to accelerate the adoption of stablecoin-based payments, RLUSD is designed to maintain a value of 1:1 to the US dollar. Ripple says that stablecoins offer an opportunity to redefine how businesses and consumers engage in financial transactions, by enabling low-cost, instant settlement of local and cross-border payment transactions.
“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 stablecoins at Ripple, also added. “By leveraging the Chainlink standard, we bring trusted data onchain, further strengthening RLUSD’s utility across both institutional and decentralised applications.”
Ripple revealed that it chose Chainlink Price Feeds after reviewing various Oracle solutions. After review, it attributed its choice to a ‘multitude’ of features offered by Chainlink, including high-quality data, secure node operators, a decentralised network, and a robust reputation framework.
Chainlink Price Feeds source data from a variety of premium data aggregators, enabling it to aggregate its price data from hundreds of exchanges, weighted by volume, and cleaned of outliers and wash trading.
Chainlink’s reputation framework and set of on-chain monitoring tools enable users to independently verify the historical and real-time performance of node operators and oracle networks.
