Ripple Labs has expanded the utility of its Ripple USD stablecoin (RLUSD) through a new partnership with fintech firm RedotPay. This collaboration aims to enhance cross-border payments by integrating RLUSD with traditional banking systems and blockchain solutions.
The two companies have introduced a new feature, “Send Crypto, Receive NGN,” allowing users to send XRP or other supported cryptocurrencies and automatically convert them to Nigerian Naira (NGN). This feature is designed to reduce the typical high fees and long wait times associated with international money transfers. Ripple and RedotPay are targeting faster and cheaper remittances, hoping to resolve issues of slow and expensive global transfers.
This collaboration will be beneficial for freelancers, digital nomads, and businesses needing quick and low-cost transfers. The feature integrates Ripple’s cross-border payment technology, allowing users to transfer digital assets like Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), in addition to RLUSD.
Significant Cost Reductions for Cross-Border Transfers
Currently, the fees for international transfers often reach around 6.94%. However, with the introduction of RLUSD, users will experience significantly lower fees, as the stablecoin facilitates immediate payouts. Ripple’s growing presence in cross-border payment solutions will further support its RLUSD stablecoin.
Ripple’s partnership with RedotPay is already yielding positive results. The number of RLUSD holders has exceeded 6,500, with the volume increasing by over 65% in the past 48 hours. Ripple’s strong focus on infrastructure and regulatory compliance, as explained by Ripple’s Head of Information Security, Akshay Wattal, positions the company to capitalize on the future of the tokenized economy.
Ripple’s efforts show how blockchain technology can seamlessly integrate with traditional finance to create more efficient and cost-effective global payment systems. By improving transaction speed and reducing costs, the RLUSD stablecoin is making a significant mark on the remittance market.