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- Ripple Labs has tapped Chainlink price feeds to boost RLUSD transparency.
- Chainlink offers unique technology that can help drive RLUSD adoption in DeFi.
Ripple Labs Inc., an American technology and blockchain-based payment firm, has partnered with Chainlink, a decentralized open-source protocol. Through the partnership, Ripple will utilize Chainlink’s standard to provide reliable pricing data for its RLUSD stablecoin.
Ripple’s Vision for the Chainlink Integration
Ripple’s team shared in a press release that the Chainlink integration will improve RLUSD’s adoption and utility in Decentralized Finance (DeFi) applications. The Chainlink Price Feeds, which are now live, provide a reliable source of RLUSD pricing data on the Ethereum mainnet.
This integration allows developers to integrate RLUSD support into their DeFi applications for transactions like trading and lending. Additionally, Ripple can utilize Chainlink’s battle-tested infrastructure to offer the RLUSD ecosystem access to high-quality off-chain data.
The Chainlink infrastructure, trusted by the world’s largest financial institutions, has enabled over $18 trillion in transaction value. Ripple said the integration with Chainlink ensures real-time high-quality market data on RLUSD is always available. Ripple added that this consistent and secure data will mitigate price inaccuracy risks and support smart contracts.
The Chainlink integration follows RLUSD’s December launch after receiving regulatory approval from the New York Department of Financial Services (NYDFS). CoinGecko data shows RLUSD has reached a market cap of over $72 million as of this writing.
RLUSD is available on exchanges, including MoonPay, Uphold, Bitso, CoinMENA, and Archax. The Ripple stablecoin is pegged 1:1 to the US dollar and is issued on the XRP Ledger (XRPL) and Ethereum blockchains.
Why Ripple Chose Chainlink
RLUSD is natively composable with smart contract applications such as those seen in DeFi. However, the stablecoin requires accurate on-chain price data to function efficiently in DeFi applications.
Thus, Ripple has chosen Chainlink Price Feeds as they meet the critical need for its RLUSD stablecoin. The Chainlink standard provides the data required to accelerate RLUSD’s adoption within DeFi and fully realize the stablecoin opportunity.
According to Ripple, Chainlink’s data aggregation model generates more accurate global market prices. These prices are inherently resistant to inaccuracies or manipulation, making them a reliable option for Ripple. Also, Chainlink nodes have a strong track record of reliability, even during infrastructure outages and high gas prices.
Furthermore, Chainlink provides a set of on-chain monitoring tools, allowing users to independently verify node operators’ historical and real-time performance.
Ripple, among many others in the blockchain space, has integrated Chainlink’s Price Feed to power DeFi strategies. In August, omnichain money market platform Radiant Capital announced its integration of Chainlink Price Feeds on the Base mainnet.
In a similar move, CNF reported that Morpho Blue integrated Chainlink Price Feeds for precise lending prices and flexible market options.
These integrations highlight Chainlink’s resilience and trustworthiness to financial institutions, protocols, and applications. Notably, Chainlink’s native token, LINK, has benefited from the network’s increasing adoption. LINK, currently trading at $23.2, has increased by over 71% in the past year.
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