Ripple, the blockchain company closely linked to the XRP Ledger network (XRP), invested in African payments company Flutterwave as part of its Series E funding round, a deal centered on expanding the use of stablecoins for cross-border payments.
Flutterwave said Tuesday that the funding round values the company at $3.2 billion. Financial terms for Ripple’s stake were not disclosed.
The deal will integrate Ripple’s US dollar-backed stablecoin, RLUSD, into Flutterwave’s payment infrastructure, allowing companies to settle some international transactions using digital dollars instead of relying solely on traditional banking networks.
Flutterwave will also connect to Ripple Payments, Ripple’s global payment network, and use the XRP Ledger blockchain to process transactions.
The companies said the aim is to make it easier and cheaper for businesses across Africa to send and receive money internationally.
The agreement points to the growing role that stablecoins play in international payments, one of the digital asset industry’s fastest growing use cases. While cryptocurrencies are often associated with commerce, stablecoins are increasingly being used by businesses and ordinary people to move money across borders and manage US dollar liquidity in regions where access to foreign currency may be limited.
