Ripple Brings US Dollar-Backed Stablecoin RLUSD and Custody Solutions to South African Banks: Can Ripple Dominate Africa’s Digital Assets?

Ripple Partners With Absa Bank to Offer Institutional Digital Asset Custody in Africa

Ripple has joined forces with Absa Bank, one of South Africa’s leading financial institutions, to offer institutional-grade digital asset custody services.

The agreement will see Absa integrate Ripple’s custody technology, enabling the bank to securely store and manage tokenized assets, including cryptocurrencies, for its institutional clients.

How Will Absa Use Ripple’s Custody Technology

Under the partnership, Absa will leverage Ripple’s enterprise custody infrastructure to deliver compliant and scalable storage solutions for digital assets.

Robyn Lawson, Head of Digital Product and Custody at Absa, said:

“We recognise the importance of providing our customers with secure, compliant, and robust custody solutions for their digital assets. Ripple’s custody solution allows us to leverage proven and trusted technology that meets the highest security and operational standards. Together, we can deliver the next generation of financial infrastructure to our customers.”

Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, highlighted the significance of the move:

“Africa is experiencing a major change in how value is stored and exchanged, and our partnership with Absa reiterates Ripple’s commitment to unlocking the potential of digital assets on the continent. As one of the most respected and innovative banks in Africa, Absa has a strong track record of leadership, and we’re proud to support its digital asset ambitions with the most secure and compliant custody infrastructure on the market.”

Africa’s Growing Appetite for Digital Assets

The partnership comes amid increasing demand for regulated digital asset infrastructure across emerging markets.

According to Ripple’s 2025 New Value Report, 64% of finance leaders in the Middle East and Africa cited faster payments and settlement times as a key reason for adopting blockchain-based currencies in cross-border transactions.

Blockchain analytics firm Chainalysis reported that Sub-Saharan Africa received over $205 billion in on-chain value between July 2024 and June 2025, a 52% increase from the previous year.

South Africa and Nigeria have emerged as leading jurisdictions with formal frameworks for crypto trading, taxation, and custody, giving banks confidence to explore digital asset services.

Ripple Expands Its African Footprint

This is Ripple’s first major custody partnership in Africa, building on earlier collaborations such as Chipper Cash, which uses Ripple’s technology for cross-border crypto-enabled payments.

The move also aligns with Ripple’s recent introduction of its US dollar-backed stablecoin, RLUSD, to African markets.

RLUSD is issued by a New York trust company regulated by the state’s Department of Financial Services and has surpassed $700 million in supply on Ethereum and the XRP Ledger.

RLUSD is already being tested in real-world applications across the continent.

In Kenya, Mercy Corps Ventures is piloting the stablecoin in climate risk insurance programs, including escrowed funds that are automatically released when satellite data detects drought conditions.

Additionally, Zug-based crypto bank AMINA has announced support for RLUSD through custody and trading services.

Can Banks Safely Enter the Digital Asset Space?

Absa’s adoption of Ripple’s custody infrastructure positions the bank as one of the first major African institutions to offer secure crypto storage to institutional clients.

The system is designed to meet strict operational, security, and regulatory standards, allowing financial institutions to navigate regional regulations confidently while managing tokenized assets.

Ripple now operates a global custody network spanning Europe, the Middle East, Asia-Pacific, Latin America, and Africa.

With over 60 regulatory licenses worldwide, the company continues to position itself as a leading provider of compliant digital asset infrastructure, bridging traditional banking and blockchain finance.

How Crypto Payments Are Reaching Consumers?

While institutional custody grows, consumer-level adoption in South Africa is also increasing.

QR payments provider Scan to Pay recently partnered with Bitcoin payments company MoneyBadger to enable crypto payments at checkout counters for over 650,000 merchants.

Exchanges including Binance, Luno, Blink, and VALR are integrated, allowing customers to pay with Bitcoin, stablecoins, and other crypto assets, while merchants receive settlements in rand.

This wave of adoption highlights Africa’s evolving financial ecosystem, where banks, fintech platforms, and digital assets are increasingly intertwined, providing both institutional and retail users with new opportunities to access blockchain-enabled services.