Ripple has launched a groundbreaking blockchain-based insurance pilot in Kenya, harnessing the power of Web3 to deliver timely and transparent disaster relief to thousands of pastoralists. In partnership with DIVA Donate, this pilot successfully insured 517 individuals, 70% of whom were women, using Ripple’s newly launched stablecoin RLUSD.
According to a post from Ripple on X, The project stands out for its innovative use of satellite data to monitor drought risks, a major concern for pastoral communities in Kenya. The program measured the level of vegetation in real time to allow a precise evaluation of drought conditions during a critical season.
Luckily, the vegetation was good, as observed by the satellite data, and as such, there was no need for payout. This explains why technology can effectively save helpless communities by offering data-driven solutions
Continuous Coverage and Expansion of the Pilot
The Ripple pilot is already at an advanced stage of development, as it is going on with its aim of giving drought protection to the pastoralists of Kenya. The second phase will target Laikipia County, which is habitually prone to drought, with the aim of covering 533 citizens. In the event that poor conditions are identified during the summation of the rainy season in May 2025, the program will offer $75 relief per individual.
The second round of funding that Ripple will pursue has a solid target of $40,000. Notably, an excess of funds will be available to the tune of $12 000 that was unutilized in the previous attempts by Mercy Corps Ventures and Arbitrum, and this amount will be directed towards subsidizing the outreach of the initiative to higher levels. This covers more people in need, sustaining the positive trend of using Web3 technology to do social good.
BNY Mellon Joins Forces with Ripple to Secure RLUSD
The announcement of BNY Mellon as its primary custodian will certainly boost Ripple’s quest to ensure the introduction of RLUSD as an institutional-grade stablecoin. This collaboration with the oldest financial firms in the world is an indication that digital currency technology is gaining validity and that banks are also paying more attention to the blockchain.
The entire regulatory approval under the New York financial regulations places the RLUSD at the forefront as the standard stock in the transaction of finances in the blockchain domain.
These real-life issues can be resolved with the RLUSD, which is an effective tool with a solid foundation thanks to the work of BNY Mellon in the realm of the Ripple blockchain projects. The trend is also notable when Web3 implementations, such as blockchain-based insurance, are implemented into general financial markets to provide transparent, fast, and safe transactions.
The Web3 technology aims to demonstrate its potential as a game-changer in providing disaster recovery in real time and driven by data, as a pilot blockchain-enabled insurance project in Kenya demonstrates.
This novel technology application, however, is not only transforming the process of providing relief but also preconditioning the development of better and more efficient measures in the war against climate-related disasters.
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