Ripple partners with Chainlink to improve RLUSD stablecoin pricing

Ripple has teamed up with Chainlink by incorporating their blockchain technology to offer accurate price information for its RLUSD stablecoin.

RLUSD, a digital currency pegged to the US dollar, has been engineered for swift and secure transactions. It can be used on not one but two leading blockchain platforms: XRP Ledger and Ethereum (ETH). By partnering with these networks, Ripple aims to expand the versatility of RLUSD in the realm of decentralized financial solutions.

In simpler terms, DeFi (Decentralized Finance) is a type of digital finance that operates using blockchain technology and doesn’t require traditional intermediaries like banks. Instead, it uses self-executing software known as smart contracts to carry out transactions following predetermined guidelines.

Stablecoins such as RLUSD play a vital role in Decentralized Finance (DeFi) since they provide price consistency, being tied to conventional currencies like the U.S. dollar.

Chainlink’s price feeds

To ensure the efficiency of RLUSD in DeFi operations like lending or trading, it’s crucial to have precise price data. This is where Chainlink (LINK) steps in. Chainlink functions by utilizing a decentralized network of oracles – systems linking blockchain apps with real-world information – to deliver timely and tamper-proof pricing details.

Adopting Chainlink’s Price Feeds allows Ripple to mirror RLUSD’s worth with actual market trends. This system collects information from various trading platforms, thus decreasing errors and lowering the chance for manipulation.

Ripple opted for Chainlink due to its established security, distributed infrastructure, and robust reliability track record.

At the time of writing, Ripple’s price was trading at $2.43.

There’s increasing hope that the U.S. Securities and Exchange Commission might grant approval for a Ripple ETF trading on the spot market in 2025. Several companies like Bitwise, Canary Capital, 21Shares, and WisdomTree have already submitted their applications for an XRP-based ETF.

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2025-01-07 17:42