Ripple-Chainlink Stablecoin Partnership Doesn’t Stop XRP and LINK Sinking
Two of the crypto industry’s largest entities have joined forces to boost the adoption of a stablecoin in decentralized finance markets.
US fintech firm Ripple and blockchain oracle provider Chainlink have partnered to accelerate the adoption of the cross-border payments firm’s stablecoin, Ripple USD.
“Ripple has adopted the Chainlink standard to access highly secure and reliable pricing data around the recently launched Ripple USD (RLUSD) stablecoin,” stated Chainlink on Jan. 7.
Ripple describes its new stablecoin as an “enterprise-grade, USD-denominated stablecoin created with trust, utility, and compliance at its core.”
Another Stablecoin Enters Crowded Market
Chainlink’s price oracle feeds will provide real-time pricing data for RLUSD on Ethereum, which enables DeFi applications to integrate the stablecoin for trading, lending, and other uses.
RLUSD is issued on the XRP Ledger and Ethereum blockchains, which makes it natively compatible with smart contract applications and DeFi.
.@Ripple has adopted the Chainlink standard to access highly secure & reliable pricing data around the recently launched Ripple USD (RLUSD) stablecoin.
Learn how Chainlink Price Feeds are set to accelerate the adoption of RLUSD across the DeFi ecosystem: https://t.co/BKJIgG0mpS
— Chainlink (@chainlink) January 7, 2025
Johann Eid, Chief Business Officer at Chainlink Labs, said, “The adoption of tokenized assets such as stablecoins will continue to accelerate in the coming years, and having access to critical on-chain data will accelerate the process.”
“By leveraging the Chainlink standard, we bring trusted data on-chain, further strengthening RLUSD’s utility across both institutional and decentralized applications,” added Jack McDonald, SVP at Ripple.
RLUSD is entering a crowded stablecoin market dominated by Tether, which has a 65% market share.
The total stablecoin market capitalization is at a record high of around $212 billion, representing around 6% of the entire crypto asset market, according to CoinGecko, which lists 232 stablecoins or pegged token derivatives.
XRP and LINK Slide
The announcement did nothing for the pair’s respective tokens, which took a hit in the broader market slump on Tuesday.
Ripple’s XRP has fallen 6.4% on the day, from $2.45 to $2.28 at the time of writing. However, the cross-border token still remains up 6.6% over the past week and has gained a whopping 340% over the past three months.
XRP remains around 34% down from its peak price of $3.40, which came seven years ago this week.
Chainlink’s LINK took a huge 11.7% hit, falling from $23.50 to $20.5 at the time of writing as altcoins got hammered in the market correction. LINK topped $30 in a three-year high in mid-December but hasn’t managed to return there and remains down 59% from its May 2021 all-time high of $52.70.
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