Ripple and its partners are testing a blockchain-based assistance program designed to support farmers in Kenya.

Ripple, collaborating with MCSocialVenture and DIVADonate, is rolling out a pilot program in Kenya utilizing blockchain technology for aid distribution. This initiative will use RLUSD for drought insurance, aiming to enhance the speed, efficiency, and transparency of aid in areas affected by drought. Ripple Labs has teamed up with Mercy Corps Ventures, the investment branch of the global development organization Mercy Corps, and DIVA Donate, a platform that utilizes decentralized finance (DeFi) for conditional donations, to support pastoral communities suffering from drought in Kenya. According to Ripple’s report, this project will incorporate Ripple USD (RLUSD), a stablecoin that operates on both the XRP Ledger and Ethereum blockchains. Introduced in December 2024, RLUSD is entirely supported by US dollars at a ratio of 1.603:1, ensuring significant stability and transparency for both donors and beneficiaries. Pastoral communities in Kenya are becoming more susceptible to extreme droughts that jeopardize their means of living due to their reliance on livestock and a nomadic way of life. Aiming to raise $40,000, the initiative will assist 533 herders in Laikipia County, an area vulnerable to drought, by offering prompt financial aid and improving their ability to withstand climate-related difficulties. Operational Framework. The pilot project adopts a data-based strategy for proactive drought assistance, making use of blockchain technology alongside real-time environmental information. Individuals can participate in the RLUSD Pool by linking their digital wallets, like MetaMask or Coinbase Wallet, to the DIVA Donate platform. After establishing a connection, users are able to add RLUSD tokens to the pool. The platform facilitates fast and secure transactions through the use of ERC-20 tokens, with all transactions being recorded on the blockchain, which ensures transparency and the ability to trace all donations. This method minimizes the likelihood of fraudulent activities and improper handling of finances. A smart contract, which is a contract that automatically enforces its terms through code, is utilized to oversee the funds. In this instance, DIVA Donate keeps the donated funds in a third-party escrow account until specific pre-established conditions, referred to as drought triggers, are fulfilled.