A Partnership Between Chainlink and Ripple Could Revolutionize DeFi

On January 7th, Ripple and Chainlink announced a partnership regarding the RLUSD stablecoin. Indeed, Chainlink offers oracle services that Ripple needs for the operation of its stablecoin. What is this collaboration? We explain everything about this announcement that has caused a lot of noise.

Chainlink of great use for RLUSD

As you probably know, Ripple recently announced the creation of a stablecoin called RLUSD, which will be present on the Ethereum blockchain and XRP Ledger. For its part, Chainlink is a provider of decentralized oracles, which allow to obtain reliable, and on-chain, data in a completely secure and transparent manner.

RLUSD will benefit from the products developed by Chainlink to enable its integration into many decentralized DeFi applications. Oracles will provide price feeds for RLUSD on the ETH and XRP networks, so that DApps can reliably use it in exchanges and other DeFi services.

Additionally, RLUSD is backed by the US dollar, and requires tamper-proof, real-time, on-chain data to function. Chainlink will enable this, through its decentralized nodes. Colin Cunningham, the Head of Tokenization and Alliances at Chainlink Labs, recently stated:

Chainlink’s integration with RLUSD is a great signal for the market. Our team is excited to support the launch of RLUSD. Projects like Ripple have stood the test of time and an incredible amount of change throughout the ups and downs of the crypto markets over the years.

The goal of the collaboration is mutual:

It allows Chainlink to further strengthen its position as the market’s leading decentralized oracle provider, with a major partnership with Ripple. For RLUSD, it’s about enabling greater adoption, better compatibility with DApps, and minimizing or even eliminating downtime for the stablecoin.

Applications of this announcement for DeFi

With this collaboration, it would not be surprising to see RLUSD being integrated into swap, payment, lending and borrowing protocols , etc. This announcement is in line with Ripple’s vision of making RLUSD a major stablecoin in the market.

Stablecoins, including RLUSD, play an important role in decentralized finance. They primarily serve as a store of value and a hedge against the often exacerbated volatility of the cryptocurrency market.

Obviously, this is not a first for Chainlink , which integrated with Project Diamond less than a month ago. This is a digital asset platform for global institutions, which was founded by the Coinbase exchange.

Over time, Chainlink has become a staple of decentralized finance. Many protocols operate with these decentralized oracles as a data source. Over the years, Chainlink has shown its resilience, and has rarely failed in its task.

As a reminder, if you want to access DeFi, you need a non-custodial wallet. For example, Best Wallet can allow you to connect with DeFi DApps. You will also find an “Upcoming Tokens” tab to access the most promising tokens identified by the wallet.

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First published in Actu Finance. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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