In section Cryptocurrency

Ripple and Arf Partner to Integrate RLUSD into Global Payment Flows

Swiss fintech firm Arf is integrating Ripple’s dollar-backed stablecoin, RLUSD, into the XRP Ledger to provide short-term liquidity for cross-border payments. The partnership aims to streamline capital for institutions currently processing $10 billion in annual transaction volume by utilizing blockchain-based settlement financing.

Ripple and Arf Partner to Integrate RLUSD into Global Payment Flows

The collaboration targets licensed payment companies that frequently face liquidity gaps while waiting for international transfers to clear. By leveraging RLUSD on the XRP Ledger, Arf intends to replace traditional, collateral-heavy credit arrangements with faster, on-chain working capital. Under this model, Arf manages borrower assessments and underwriting off-chain, while the blockchain facilitates the movement of funds. Loans typically carry a repayment window of one to five days, allowing for rapid capital turnover.

While the current service operates ahead of native protocol upgrades, Arf plans to transition to the XRP Ledger’s proposed lending infrastructure once it achieves validator consensus. This future framework relies on two key amendments: XLS-65, which enables single-asset liquidity vaults, and XLS-66, which establishes a structured lending protocol. Although these proposals have gained significant support among network validators, they remain pending the 80% threshold required for mainnet activation. Until then, the partnership serves as a high-volume use case for Ripple’s stablecoin, with XRP remaining the required asset for network transaction fees and reserve requirements.

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