Stablecoin-Powered Ripple Invests in Flutterwave Improving Cross-Border Payments Across Africa.
The blockchain firm Ripple, associated with the XRP Ledger (XRP) network, has invested in the African payments company Flutterwave.
This is part of Ripples Series E funding round, a deal centered on expanding the use of stablecoins for cross-border payments. Flutterwave said on Tuesday that the funding round values the company at $3.2 billion.
The Impacts of the Investment
The deal will integrate Ripple’s U.S. dollar-backed stablecoin, RLUSD, into Flutterwave’s payments infrastructure. This automatically allowing businesses to settle some international transactions using digital dollars rather than relying solely on traditional banking networks.
Flutterwave will also connect to Ripple Payments, Ripple’s global payments network, and use the XRP Ledger blockchain to process transactions.
The companies said the goal is to make it easier and cheaper for businesses across Africa to send and receive money internationally.
The deal points to the growing role of stablecoins in international payments. One of the digital asset industry’s fastest-growing use cases. While cryptocurrencies are often associated with trading, stablecoins are increasingly being used by businesses and everyday people to move money across borders.
Reece Merrick, managing director, MEA at Ripple commented on the investment. He said, “Flutterwave has built one of the most advanced payments networks in Africa. As its infrastructure evolves, stablecoins are becoming central to that story. Our investment will establish RLUSD within that infrastructure. With Flutterwave driving stablecoin flows over the XRPL and deepening its role as a settlement layer for real-world payments across the continent.”
Read Also: Zimbabwe Introduces its First Dedicated Cryptocurrency Regulator.
RLUSD currently has a $1.6 billion in supply and its growing at a rate of over 20% this year. Its however lagging rival issuers Tether, Circle and Paxos, RWA.xyz data shows. Global stablecoin supply has reached $300 billion.
This partnership brings RLUSD to the African market, one of the most adopting and crypto friendly markets globally. Ripple effect in the African market is certain as Africa continues to center into solving cross-boarder payments.
