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Blockchain company Ripple has taken a significant step towards expanding the use of stablecoins in cross-border payments in Africa by participating in the Series E funding round of Africa-based payments company Flutterwave.
Flutterwave announced today that the investment round has raised the company’s valuation to $3.2 billion. Financial details regarding the investment amount were not disclosed.
Under the agreement, Ripple’s US dollar-pegged stablecoin $RLUSD will be integrated into Flutterwave’s payment infrastructure. This will allow businesses to conduct some international transactions using digital dollars, without being solely dependent on traditional banking channels.
Flutterwave will also connect to Ripple’s global payment network, Ripple Payments, and will utilize the $XRP Ledger blockchain network for transaction processing.
The companies stated that this collaboration aims to make the process of sending and receiving international money easier and more cost-effective for businesses across Africa.
Reece Merrick, Ripple’s General Manager for the Middle East and Africa, stated that Flutterwave has built one of the most advanced payment networks in Africa, and that stablecoins are becoming an increasingly central part of this infrastructure.
Merrick stated that Ripple’s investment would position $RLUSD within the Flutterwave infrastructure, which in turn would increase stablecoin flows on XRPL, deepening the role of the $XRP Ledger as a payment layer for real-world payments across the continent.
From Ripple’s perspective, the investment stands out as a move to expand the use of $RLUSD in Africa, where remittances and cross-border trade play a significant role in the economy.
*This is not investment advice.
coindesk.com
bitcoinworld.co.in
