Blockchain company Ripple has completed an RLUSD powered experimental program that could offer protection against drought to hundreds of pastoralists residing in Kenya’s Laikipia County. It was carried out through the Ripple Impact with Mercy Corps Ventures and the donor platform DIVA Donate.
The pilot, announced in April 2025, is a new system of drought insurance that uses RLUSD, an Ethereum and XRPL compatible stable-coin developed by Ripple. The project included 517 pastoralists, with 70% of them being women in the northern part of Laikipia, which is often hit by intermittent rainfall and stressed vegetation levels.
The insurance process utilized satellite-monitored Normalized Difference Vegetation Index (NDVI) measurements to identify vegetation health. According to these readings, automated RLUSD payouts were activated using smart contracts when the NDVI values were below the levels of criticality.
In case the NDVI fell below the value of 0.55, full RLUSD would be paid. A linear scale was used to determine NDVI values between 0.55 and 0.61. Partial payouts were distributed if the NDVI read 0.57, and did not payout if it was above 0.61.
In the pilot period, the NDVI values showed favorable results for the health of the vegetation throughout Laikipia; thus, no disbursements were made. However, the RLUSD tokens are still saved to be used for future drought periods, especially in high-risk months.
Although there have never been payouts, the pilot was regarded as successful in building a scalable and automated climate relief system. Ripple reported that the money will be carried into the second half of the year, the next high drought risk period, so that the funding can continue without going back to raise funds.
The support on Ripple also allowed the project to raise its funding goal to 40,000, intending to cover 533 pastoralists each with $75 to secure them. The estimate will feed one livestock animal within a six-month period.
