- Ripple’s RLUSD-based drought insurance pilot covered 517 pastoralists in Kenya, with 70% being women.
- No payout was triggered due to favorable vegetation conditions, allowing RLUSD funds to roll into the next high-risk season.
- The upcoming campaign, targeting 533 participants, is backed by Ripple and legacy funds from Mercy Corps Ventures and Arbitrum.
Ripple’s innovative blockchain-based insurance pilot in Kenya has wrapped up its first phase that was conducted in partnership with DIVA Donate, successfully insuring 517 pastoralists, 70% of whom were women, using Ripple’s newly launched stablecoin RLUSD.
The project demonstrates the clear potential of Web3 solutions in disaster preparedness.
How RLUSD is fixing real-world problems
According to a post from Ripple on X (formerly Twitter), the insurance pilot utilized satellite vegetation data to monitor drought risk over a critical season.
Favorable conditions during this monitoring period meant no payouts were triggered, as satellite imagery showed sufficient vegetation to sustain livestock.
The unused RLUSD has been automatically rolled into the next high-risk season, ensuring ongoing protection for the same group of pastoralists.
DIVA Donate, which coordinated the deployment of the RLUSD-based drought coverage, confirmed that this marks the fifth campaign under its anticipatory aid initiative.
Next Phase’s Funding Target: $40K
The upcoming phase will again target Laikipia County, a drought-prone region in northern Kenya, offering $75 in relief per participant if adverse conditions are detected at the end of the long rains in May 2025.
With Ripple’s support, this next phase will have an expanded funding target of $40,000. This will enable coverage for 533 individuals, slightly more than the initial group. Notably, the campaign is also being boosted by $12,000 in leftover funds from earlier efforts by Mercy Corps Ventures and Arbitrum.
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The use of RLUSD on Ethereum within a blockchain-based escrow system allows for transparent tracking of donations and conditional disbursements tied to real-world data (in this case, NDVI vegetation indices).
Ripple Names BNY as Primary Custodian
BNY Mellon was recently named as the primary custodian of the RLUSD stablecoin. This partnership with one of the oldest financial institutions in the world is extremely valuable for Ripple and showcases that traditional banks are finally embracing digital assets at scale.
Related: Ripple, XRP & XRP Ledger: How They Work in Crypto Together
According to CoinMarketCap data, RLUSD currently has a market cap of $501 million and its trading volume spiked almost 150% in the past 24 hours, suggesting rising adoption.
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