Ripple has launched a blockchain-powered drought relief initiative aimed at supporting dryland communities in Kenya’s Laikipia County.
Done in partnership with Mercy Corps Ventures and DIVA Donate, the company introduced a pilot program that will automatically release financial aid to 533 pastoralists when vegetation health data signals drought conditions.
The initiative uses Ripple USD (RLUSD), the company’s U.S. dollar-pegged stablecoin, which is issued on both the XRP Ledger and Ethereum blockchains.
“In partnership with Mercy Corps Ventures and DIVA Donate, Ripple is supporting a pilot project that will use blockchain technology to deliver financial support in the form of Ripple USD (RLUSD) – the stablecoin backed by stability, trust, and compliance – to pastoral communities in Kenya affected by drought,” said Ripple.
Nium, Which Leverages the Ripple Blockchain, Enables Bank and Mobile Money Transfers to 4 African Countries https://t.co/GSOUyqKKXM via @Bitcoin KE
— AltarOfEgo
(@unidentifiedta1) March 17, 2021
Mercy Corps Ventures serves as the impact investing branch of the international development organization, Mercy Corps.
DIVA Donate, which ran a similar program in 2023, is a parametric donation platform that uses decentralized finance (DeFi) and satellite-based data to streamline disaster relief efforts. By combining smart contracts with satellite imagery, the system tracks grazing conditions to trigger timely aid distribution.
USE CASE | A Campaign to Donate to Pastoralist Communities in Kenya Using Diva Protocol on Polygon Kicks Off
The goal of the campaign is to provide financial support to enrolled pastoralists in Kenya.
The target cover amount of $150 per pastoralist intends to subsidize the… pic.twitter.com/chJj17td4R
— BitKE (@BitcoinKE) October 24, 2023
The project relies on the Normalized Difference Vegetation Index (NDVI), a satellite-based metric that assesses vegetation health. If the index drops below the drought threshold by May 31 2025, RLUSD funds are automatically distributed, providing each pastoralist with approximately $75 – enough to sustain one livestock animal for six months.
Participants can contribute by depositing $RLUSD through linked wallets, with the funds held in escrow. These funds are only released when satellite data triggers the smart contract due to confirmed drought conditions. If the threshold isn’t met, contributors have the option to withdraw their funds or redirect them to future relief efforts.
Ripple highlighted the potential of stablecoins and blockchain to improve the efficiency of global aid delivery. Common barriers such as:
- Slow settlement times
- Lack of transparency, and
- Challenges reaching unbanked communities
often limit the effectiveness of traditional cross-border assistance.
With $RLUSD, Ripple aims to address these issues through programmable and traceable payments.
This initiative builds on the company’s earlier support for organizations like CARE and Mercy Corps Ventures in exploring blockchain’s role in advancing financial inclusion. At Swell 2024, Ripple furthered its commitment by teaming up with the International Rescue Committee to pilot blockchain-enabled payments in humanitarian programs – signaling a growing convergence between digital finance and social impact.
Interested parties can connect their wallets and donate for this insurance here.
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