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Ripple has embraced the Chainlink standard to furnish dependable onchain pricing data for its RLUSD stablecoin, to enhance its assimilation into decentralized finance (defi) applications.
Ripple Partners with Chainlink to Bolster RLUSD in Defi
The RLUSD stablecoin, engineered to hold a 1:1 peg to the U.S. dollar, seeks to exhibit the advantages of Ripple‘s expertise across both the cryptocurrency and conventional financial arenas. Issued on both the XRP Ledger and Ethereum blockchains, RLUSD aspires to offer interoperability with defi smart contract applications. However, to encourage adoption within defi ecosystems, developers necessitate access to high-fidelity, tamper-resistant price feeds and oracles.
On Tuesday, Ripple revealed to Bitcoin.com News that it opted for Chainlink Price Feeds to satisfy this requirement, harnessing its infrastructure to deliver consistent and precise data. Chainlink‘s decentralized oracle network amasses data from diverse sources, providing volume-weighted average pricing that is resilient against inaccuracies and manipulation. By integrating this system, Ripple elucidated that the company intends to forge a secure and transparent environment for RLUSD.
The Chainlink integration facilitates the direct delivery of RLUSD pricing data onchain, bolstering applications like trading and lending. In the press statement, Ripple stressed the significance of this step in cultivating trust and utility for the RLUSD stablecoin in both institutional and decentralized markets. Chainlink’s demonstrated dependability and its involvement in transactions exceeding $18 trillion were noted as pivotal in Ripple’s decision-making process.
Johann Eid, chief business officer at Chainlink Labs, emphasized the partnership’s capacity to expedite the adoption of stablecoins, stating that access to verifiable onchain data is crucial for the widespread acceptance of tokenized assets. Jack McDonald, Ripple’s senior vice president of stablecoin operations, mirrored these thoughts as well, highlighting the integration’s contribution to maintaining stability and fostering market confidence in RLUSD.
“By leveraging the Chainlink standard, we bring trusted data onchain, further strengthening RLUSD’s utility across both institutional and decentralized applications,” McDonald concluded.