US crypto company targets $54 billion African stablecoin market with regulatory-compliant dollar alternative
Ripple has launched its dollar-backed stablecoin RLUSD across Africa through partnerships with major fintech platforms VALR, Yellow Card, and Chipper Cash, targeting a region that processed $54 billion in stablecoin transactions in 2024—nearly half of all African crypto activity.
The expansion makes RLUSD available on South Africa’s largest crypto exchange VALR, Yellow Card’s pan-African payments platform, and Chipper Cash’s cross-border payments product, enabling retail users, businesses, and institutions to access the regulatory-compliant digital dollar for remittances, treasury operations, and trading.
African Stablecoin Market Attracts Global Competition
Sub-Saharan Africa’s massive stablecoin adoption has made the region a critical battleground for digital dollar issuers. Nigeria, one of the world’s largest USDT markets where citizens use stablecoins to hedge against naira devaluation, represents a particularly strategic target for Ripple’s expansion.
Global stablecoin leaders Tether (USDT) and Circle (USDC) have already invested heavily in controlling blockchain infrastructure and payment rails in the region. Ripple’s entry through established local partnerships represents a distribution-focused strategy to compete for market share.
“RLUSD has quickly become established in enterprise financial use cases, from payments to tokenisation to collateral in both crypto and traditional trading markets,” said Jack McDonald, SVP of stablecoins at Ripple. “We’re seeing demand for RLUSD from our customers and other key institutional players globally.”
Compliance-First Approach in Competitive Market
Launched in December 2024, RLUSD positions itself as a compliance-first stablecoin issued by a New York trust company regulated by the New York Department of Financial Services. The stablecoin has reached over $700 million in market capitalization but represents just 0.24% of the $297 billion global stablecoin market dominated by USDT, USDC, and Ethena’s yield-bearing USDe.
Ripple’s regulatory approach contrasts with some competitors and may appeal to institutions seeking compliant digital dollar exposure. However, the company faces significant challenges in gaining market share against established stablecoins that already have widespread adoption and network effects.
Beyond Payments: Humanitarian and Climate Applications
Ripple is exploring applications beyond traditional payments and trading through pilot projects in Kenya with Mercy Corps Ventures. These initiatives aim to use RLUSD for insurance payouts to farmers facing climate-related challenges like droughts and floods.
While these humanitarian use cases provide positive messaging, their commercial impact remains to be proven. The success of RLUSD in Africa will likely depend more on adoption for remittances, trading, and business payments where established competitors already have significant presence.
Strategic Partnership Model
Ripple’s partnership approach leverages existing fintech infrastructure rather than building direct consumer relationships. This strategy could accelerate distribution but also creates dependency on partner platforms for user acquisition and retention.
VALR’s position as South Africa’s largest crypto exchange provides immediate access to an established user base, while Yellow Card’s pan-African reach and Chipper Cash’s cross-border focus address different market segments across the continent.
Market Challenges and Opportunities
Despite Africa’s large stablecoin market, Ripple faces substantial competition from USDT’s entrenched position, particularly in Nigeria where it serves as a de facto hedge against local currency instability. Building trust and liquidity for a new stablecoin requires significant time and resources.
The regulatory compliance angle may appeal to institutional users and government partnerships, but retail adoption often prioritizes accessibility and liquidity over regulatory status. RLUSD’s success will depend on whether compliance advantages can overcome network effects favoring established stablecoins.
RLUSD is already available globally on major exchanges including Kraken, Gemini, and Bitstamp, and integrated into Ripple’s existing cross-border payments infrastructure. The African expansion represents a significant test of whether regulatory-compliant stablecoins can gain meaningful market share in regions dominated by established alternatives.
The outcome will influence broader industry strategies for stablecoin distribution and the role of regulatory compliance in emerging market adoption.
