Ripple Deploys RLUSD in Kenya as Blockchain Aid Faces Real-World Drought Test

Ripple unveiled a new blockchain-based drought relief initiative on April 4, targeting arid communities in Kenya’s Laikipia County. Collaborating with Mercy Corps Ventures and DIVA Donate, the firm introduced a pilot that will automatically distribute financial assistance to 533 pastoralists if vegetation health indicators confirm drought conditions.

This project utilizes Ripple USD (RLUSD), the company’s stablecoin pegged to the U.S. dollar and issued on both the XRP Ledger and Ethereum networks. As Ripple stated:

In partnership with Mercy Corps Ventures and DIVA Donate, Ripple is supporting a pilot project that will use blockchain technology to deliver financial support in the form of Ripple USD (RLUSD)—the stablecoin backed by stability, trust, and compliance—to pastoral communities in Kenya affected by drought.

​Mercy Corps Ventures is the impact investing arm of the global development agency Mercy Corps. DIVA Donate is a parametric conditional donation platform that leverages decentralized finance (DeFi) and remote-sensed data to deliver effective and efficient disaster relief. The system integrates smart contracts and satellite imaging to monitor grazing conditions.

The Normalized Difference Vegetation Index (NDVI), a satellite-based metric, is used to evaluate vegetation health. If conditions fall below the drought threshold by May 31, funds are automatically disbursed via RLUSD, with each pastoralist eligible to receive about $75—sufficient to feed one livestock animal for half a year.

Contributors can participate by depositing RLUSD through connected wallets, with funds held in escrow and distributed only when satellite data activates the smart contract. If drought conditions are not met, funders may reclaim their contributions or allocate them to future campaigns.

Ripple underscored how stablecoins and blockchain technology can streamline global aid distribution. Traditional challenges like delayed settlement, lack of transparency, and difficulty reaching unbanked populations often hinder cross-border support. RLUSD aims to counter these issues with programmable, traceable disbursements. This effort builds on Ripple’s previous work funding organizations such as CARE and Mercy Corps Ventures to explore blockchain’s role in financial inclusion. At Swell 2024, Ripple expanded its efforts by partnering with the International Rescue Committee to pilot blockchain-powered payments in relief programs, reflecting the growing interest in merging digital finance and social impact.

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