RLUSD-Powered Climate Insurance in Kenya
Mercy Corps Ventures is the impact investing arm of the global humanitarian agency Mercy Corps. They provide early-stage capital and strategic support to startups in emerging markets, focusing on inclusive fintech and climate resilience.
Goal
In partnership with Mercy Corps Ventures, BlockBima, and Fortune Credit, Ripple deployed its RLUSD stablecoin in a live parametric insurance program in Kenya. The goal was not only to make insurance faster and more cost-effective, but to extend credit and coverage to MSMEs that traditional lenders had written off as too risky to serve.
Solution
When satellite-verified rainfall crossed a damage threshold, smart contracts on the XRPL EVM sidechain automatically reduced borrowers' loan repayments, with RLUSD settling on the XRP Ledger. The results: settlement time fell from a 30-day industry baseline to one day, on-chain settlement cost came in at a fraction of a cent per payout, and 322 insurance-backed loans unlocked $12,500 in working capital credit for 203 MSMEs.
"The risk of climate driven default among these market women was high, which had previously kept them locked out of formal credit. Settling payouts in RLUSD on the XRP Ledger cut insurance costs to a fraction of traditional settlement, making it possible to de-risk a segment previously considered too risky to lend to."
Kennedy Nganga
CEO, BlockBima
Mercy Corps Ventures is the impact investment arm of Mercy Corps, a leading global humanitarian organization. Through Unlocking Opportunity, a joint initiative with Ripple, Mercy Corps Ventures backs early-stage fintechs and runs innovative pilots to build financial resilience for communities in emerging markets.
