Ripple and Swiss payments firm Arf have partnered to bring RLUSD-powered settlement liquidity to the XRP Ledger. The initial service offers short-term working capital to licensed cross-border payment companies, while a native lending protocol still awaits validator approval.
Ripple has partnered with Arf to bring RLUSD-powered settlement liquidity to the XRP Ledger. Arf handles approximately $10 billion in annual transaction volume, and the deal connects that business to the blockchain.
Arf to provide RLUSD financing to payment firms
According to Arf's October 22 announcement, the arrangement will provide short-term working capital to licensed cross-border payment companies. Arf will denominate the financing in RLUSD, Ripple's dollar-backed stablecoin.
Arf's existing model typically runs over one to five days. Borrowers repay the capital as their payments settle, which lets Arf deploy it again. CEO Ali Erhat Nalbant said the firm manages approximately $10 billion in annual settlement volume, with capital turning over four times each month.
Nalbant said: "Through this partnership with Ripple, we’re bringing stablecoin working capital to the XRP Ledger" in the announcement.
The announcement did not disclose a financing commitment, the amount of RLUSD allocated or the volume that will initially move through XRPL.
Native lending still needs validator approval
The companies plan to add native onchain lending in a later phase, once the ledger activates the required amendments. Two proposals underpin it: XLS-65 would introduce Single Asset Vaults and XLS-66 would establish a Lending Protocol. Arf has already built an implementation based on the proposed specifications.
However, the lending features have not received the validator approval needed for mainnet activation. As crypto.news reported on October 19, the LendingProtocol amendment had 19 supporting validators out of the 29 needed, while SingleAssetVault had 21.
Under the plan, XRP would cover network transaction fees and applicable account reserves, while RLUSD supplies the capital for settlement financing. The announcement did not establish a requirement for participating payment companies to purchase XRP.
Arf said it will migrate its financing activity to the native infrastructure once both amendments activate.
Source: crypto.news
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