Ripple has completed the first phase of its drought insurance pilot project in Kenya, aimed at providing new methods of humanitarian aid.
First Phase of the Pilot Project
In collaboration with DIVA Donate, the project insured 517 pastoralists using Ripple's new stablecoin RLUSD, with 70% of beneficiaries being women. Satellite-based vegetation data was used to monitor drought risk during the most vulnerable season. Since sufficient vegetation was detected, no payouts were triggered. Consequently, the unused RLUSD funds were automatically rolled into the next phase, maintaining protection for the same group of beneficiaries.
Project Expansion
The next phase of the initiative will focus again on Laikipia County, a region known for its susceptibility to drought. The expanded goal is to cover 533 individuals, with plans to provide $75 in aid per person if vegetation levels fall below the set threshold by the end of the rainy season in May 2025. This phase aims for a funding target of $40,000, having already raised $12,000 in leftover funds from previous efforts led by Mercy Corps Ventures and Arbitrum. The pilot continues to utilize RLUSD on Ethereum, with all funds held in a blockchain-based escrow system, ensuring transparency in donations and automating disbursements through smart contracts linked to real-world satellite data.
BNY Mellon as Custodian
To enhance the credibility and security of RLUSD, Ripple has named BNY Mellon as its primary custodian. This partnership marks a notable moment as one of the world's oldest financial institutions moves deeper into digital assets. With RLUSD fully regulated under New York’s financial framework, the stablecoin is positioned as a trusted tool for blockchain-integrated financial services.
Ripple's insurance pilot is setting a new standard for disaster preparedness by merging blockchain, stablecoins, and satellite technology to deliver more transparent and efficient humanitarian aid.
