Ripple is pushing its dollar-pegged stablecoin RLUSD into new markets through a dual strategy: a strategic investment in African payments firm Flutterwave and preliminary regulatory approval in Luxembourg under the EU's MiCA framework. The moves aim to embed RLUSD into commercial payment infrastructure across Europe and Africa, targeting high-volume cross-border transfers and remittances.
African foothold via Flutterwave
Ripple participated in Flutterwave's Series E financing round, which valued the African payments company at $3.2 billion. The partnership calls for Flutterwave to integrate RLUSD, Ripple Payments, and the XRP Ledger (XRPL) into its existing network, which already connects businesses with cards, bank transfers, mobile wallets, and other local payment methods.
Flutterwave plans to use RLUSD as a settlement asset within its payment network and Send App remittance service. It also intends to use the XRPL blockchain to clear transactions and connect its regional infrastructure with Ripple's international payout network via a common API. This setup could allow a business to send or receive money through familiar local methods while RLUSD moves between financial intermediaries in the background, reducing the need for merchants and consumers to hold cryptocurrency directly.
Reece Merrick, Ripple's managing director for the Middle East and Africa, said the investment would place RLUSD within Flutterwave's infrastructure and direct stablecoin flows through the XRP Ledger. Ripple also plans to make its payment network available for more cross-border transactions in the region. However, the companies have not provided a launch timetable, expected transaction volume, or identified the first payment corridors that will use RLUSD.
Nigeria's stablecoin demand
Ripple's investment gives it access to markets where stablecoins are already used beyond speculation. Nigeria received about $59 billion in crypto-asset inflows between July 2023 and June 2024 and has accounted for roughly 60% of stablecoin inflows into sub-Saharan Africa since 2019, according to the IMF. Dollar-linked tokens have become an alternative for households and companies dealing with naira depreciation, inflation, and limited access to foreign exchange.
Stablecoins can also compete with conventional remittance services. Sending $200 to sub-Saharan Africa costs about 9% of the transaction on average, compared with a global average of approximately 6%, the IMF said, citing World Bank data. This gap creates an opening for companies that can connect blockchain settlement with local payout networks.
Flutterwave's existing relationships with banks, merchants, and payment providers may give RLUSD a distribution channel that would be difficult for Ripple to build independently in each African market. However, the opportunity also carries regulatory risks. The IMF has warned that widespread use of dollar stablecoins can resemble digital dollarization, reducing demand for domestic currencies and weakening monetary policy transmission.
Luxembourg MiCA approval
On June 23, Ripple announced that the Commission de Surveillance du Secteur Financier issued a preliminary "Green Light Letter" for a crypto-asset service provider license under MiCA. The decision remains subject to final conditions. Once completed, the license would allow Ripple to provide covered crypto services across the European Economic Area, which includes the EU's 27 member states plus Iceland, Liechtenstein, and Norway.
Ripple intends to combine the MiCA authorization with its existing Luxembourg electronic money institution license. The company said the two approvals would allow banks, fintech firms, and corporations to collect, exchange, and distribute fiat money, stablecoins, and other crypto assets through one integration. This combination is central to Ripple's strategy of embedding RLUSD into regulated commercial stablecoin flows.
Volume questions remain
While the infrastructure is being built, Ripple has yet to demonstrate that RLUSD can generate meaningful transaction volume. The stablecoin market is dominated by USDT and USDC, which have deep liquidity on exchanges. Ripple must prove that RLUSD can beat banks, USDT, and USDC in real-world payment corridors. The companies have not disclosed projected savings for customers or explained how they will manage conversion between RLUSD and local currencies. Those details will determine whether blockchain settlement produces lower costs for businesses.