VivoPower International announced that its electric vehicle subsidiary Tembo will now accept Ripple USD (RLUSD) stablecoin for payments. The decision makes Tembo one of the first global vehicle companies to integrate the fast-growing stablecoin.
Tembo Adopts RLUSD to Speed Payments and Lower Costs
The company said in a press release that the move will reduce delays and costs linked to traditional international transfers. A large number of customers and partners of Tembo reside in developing areas where the transfer of money via banks could be tedious and costly. With RLUSD, Tembo will be able to conduct near-instant cross-border payments at a fraction of the cost when compared to traditional methods.
The company outlined several reasons for adopting RLUSD. Payments can now move faster, especially for international clients. Costs tied to wire transfers are reduced. The stablecoin also provides the stability that non-pegged digital assets cannot guarantee.
After seeing a ten-fold increase in market capitalization since January, adoption for RLUSD is now increasing in various regions. Recently, Ripple expanded into Africa with the RLUSD stablecoin through partnerships with financial enterprises such as Chipper Cash, Yellow Card, and VARL.
VivoPower observed that this rise is a sign of confidence in Ripple as a blockchain payments leader. Tembo manufactures entirely electric utility vehicles used for mining, agriculture, military, construction and humanitarian purposes. The vehicles are constructed to suit on-road and rough off-road use.
Tembo also offers related services such as charging, financing, batteries, and microgrids. By adopting RLUSD, the subsidiary adds another digital solution for its global clients.
VivoPower Ties XRP Strategy to RLUSD Adoption as Move Gains Community Support
Accepting RLUSD also fits into VivoPower’s long-term digital treasury strategy. VivoPower is in the process of transforming into what it calls the world’s first XRP-focused digital asset enterprise. As part of this strategy, the company is building a portfolio of XRP digital assets and Ripple Labs equity. The company aims to support growth of the XRP Ledger through treasury holdings, decentralized finance infrastructure, and real-world blockchain use cases.
The company said accepting RLUSD highlights its mission to combine sustainable energy, electric mobility, and blockchain-powered payments into a unified growth strategy.
Commentators pointed to connections to institutional sponsors, like Doppler Finance, and indicated that the role of the stablecoin might expand to liquidity and treasury plans. Recently, Ripple launched the RLUSD on the Horizon RWA market owned by Aave, further strengthening its utility within decentralized finance.
Some said that the adoption of RLUSD could help boost the activities of Ripple within the Southeast-Asia, African, and Middle East region, where Temblor already operate. Others added that Tembo’s approval of RLUSD is another evidence of growing real-world adoption of the XRP Ledger.
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Source: https://coingape.com/vivopowers-tembo-adopts-rlusd-for-global-payments/
