Ripple Partners With Arf to Bring RLUSD Liquidity to XRP Ledger

Benzinga · 2d ago

Ripple has partnered with Swiss-regulated financial institution Arf to bring RLUSD-powered settlement liquidity to the XRP Ledger, expanding the blockchain’s role in cross-border payments and institutional lending.

Arf processes almost $10 billion in annual global settlement volume, since its launch in November 2022.

The partnership aims to provide short-term working capital to licensed payment companies.

How Will Ripple And Arf Improve Cross-Border Payments?

Cross-border payment companies often need substantial working capital to pre-fund transactions while waiting for payments to settle.

Traditional bank financing can take months to arrange and require significant collateral, limiting liquidity available across international markets.

Arf’s payment finance model addresses this challenge by providing short-duration settlement liquidity, typically repaid within one to five days.

Through the partnership announced on Oct.22, Arf will initially provide direct settlement liquidity using Ripple’s RLUSD stablecoin on XRPL and support more payment volume.

Jasmine Cooper, RippleX’s head of product, said XRPL’s fast settlement capabilities and RLUSD’s regulated dollar infrastructure make the network suitable for institutional liquidity financing.

XRPL Lending To Boost Institutional Adoption

Arf plans to integrate XRPL’s proposed native lending infrastructure to expand settlement liquidity through Single Asset Vaults for pooling capital and a Lending Protocol for extending structured loans.

Arf will retain off chain underwriting and credit decisions while managing lending on XRPL.

The transition depends on approval and activation of the XLS-65 and XLS-66 amendments.

Arf has already developed an implementation and is providing feedback.

The partnership could boost institutional RLUSD adoption by enabling recurring loan disbursements and repayments for cross-border settlements.

Arf’s revolving liquidity model allows capital to be reused as transactions settle, potentially increasing RLUSD demand.

XRPL’s institutional expansion comes as network participation rises despite XRP’s price volatility.

Santiment Intelligence data shows non-empty wallets hit a record 8.24 million, with 4,772 new wallets added in one day, the fifth-largest spike since March.

With XRP (CRYPTO: XRP) near $1.32, a breakout above $1.40 could target $1.50, while a drop below $1.30 could weaken the bullish outlook.

Growing institutional activity could increase XRP transaction fees and reserve demand, though adoption does not guarantee price gains.

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