Stellar

<p>Arf, a liquidity platform for cross-border payments, has formally partnered with Ripple to use programmatic settlement credit on the XRP Ledger (XRPL). The collaboration links <a href="https://x.com/Ripple" rel="noopener noreferrer nofollow">@Ripple</a>'s enterprise stablecoin, <a href="https://x.com/search?q=%24RLUSD&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$RLUSD</a>, with licensed global payment institutions, and gives licensed money transfer operators real-time working capital facilities. The stated aim is more efficient use of capital.</p>
<h2 id="how-the-arf-and-ripple-liquidity-model-works">How the Arf and Ripple liquidity model works</h2>
<p>According to <a href="https://cryptobriefing.com/arf-ripple-rlusd-xrp-ledger-liquidity/" rel="noopener noreferrer nofollow">Crypto Briefing</a>, Arf is a Swiss-regulated provider of short-term working capital that lends to licensed payment firms for windows of typically 1 to 5 days. This lets them complete settlements without pre-funding the receiving end. Under the Ripple deal, that capital is delivered in RLUSD directly on the XRP Ledger. The payment firm borrows stablecoin liquidity, settles the transaction and repays once its own funds arrive.</p>
<p>The same report says the rollout will come in phases. The first covers direct RLUSD liquidity provision on XRPL, while later phases are planned to connect to the ledger's native lending features once they are fully operational. Arf reports about $10 billion in annual settlement volume and a 0% default rate across more than 1,400 days of operations, according to the report. These figures are company-reported and have not been independently audited.</p>
<h2 id="why-pre-funding-matters-in-cross-border-payments">Why pre-funding matters in cross-border payments</h2>
<p>Pre-funding ties up capital in accounts abroad, which is the problem Arf targets. Arf's earlier product, the Arf Credit Line, launched on the Stellar network using Circle's USDC. In a <a href="https://stellar.org/press/arf-solving-liquidity-constraints-in-cross-border-payments-with-support-from-stellar-development-foundation" rel="noopener noreferrer nofollow">2023 press release from the Stellar Development Foundation</a>, Arf described it as short-term (1 to 5 days) working capital for qualified licensed financial institutions. The Ripple partnership extends that model to a second blockchain and a different stablecoin.</p>
<p>For Ripple, the deal adds a liquidity provider for RLUSD in payments. Ripple's own materials say <a href="https://ripple.com/products/cross-border-payments/" rel="noopener noreferrer nofollow">RLUSD is issued under its NYDFS Trust Company Charter</a>, and that its payments platform can settle in RLUSD and other stablecoins. Pairing that infrastructure with Arf's lending could give payment firms another route to settle in near real time without holding idle balances in multiple markets.</p>
<p>The partnership is also a sign of continued competition among stablecoins and networks for cross-border settlement flows. Details such as credit limits, pricing and launch dates have not been disclosed in the sources reviewed.</p>
<p><strong>Sources:</strong></p>
<ul>
 <li><a href="https://cryptobriefing.com/arf-ripple-rlusd-xrp-ledger-liquidity/" rel="noopener noreferrer nofollow">Crypto Briefing: Arf partners with Ripple to bring RLUSD settlement liquidity to the XRP Ledger</a></li>
 <li><a href="https://stellar.org/press/arf-solving-liquidity-constraints-in-cross-border-payments-with-support-from-stellar-development-foundation" rel="noopener noreferrer nofollow">Stellar Development Foundation: Arf solving liquidity constraints in cross-border payments</a></li>
 <li><a href="https://ripple.com/products/cross-border-payments/" rel="noopener noreferrer nofollow">Ripple: Cross-border payments and RLUSD licensing</a></li>
</ul>

Settlement Liquidity Arrives on XRP Ledger

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