Crypto firm Ripple has partnered with Arf to boost RLUSD settlement liquidity on the XRP Ledger (XRPL). Arf also plans to expand its settlement activity to the XRPL lending protocol once it becomes available.
Ripple Partners Arf To Bring RLUSD Settlement Liquidity To XRPL
In a company release, the settlement platform announced a partnership with Ripple to bring RLUSD-powered settlement liquidity to licensed cross-border payment companies on XRPL. As part of the partnership, Arf will use the RLUSD stablecoin to provide short-term working capital that these payment companies can deploy and repay once they settle cross-border transactions.
As part of the first phase of the partnership, Arf revealed that it will provide direct RLUSD settlement liquidity on the XRPL. These payment companies typically repay the capital within one to five days as they settle transactions.
This move comes as the RLUSD’s utility for global payments expands. As CoinGape reported, Cross River Bank partnered with Ripple to integrate the stablecoin payments into its banking infrastructure. This will notably involve using the XRPL to settle stablecoin transactions.
Ripple has also continued to onboard more payment infrastructure providers onto its payment system. Last week, the firm partnered with DriveWealth, which has integrated the RLUSD stablecoin to support payment settlement in Europe.
Plans To Expand Settlement Layer To The Lending Protocol
Arf also revealed plans to expand its settlement liquidity activity directly onto the XRPL’s native lending infrastructure once it becomes available. “That means the capital supporting this liquidity can be managed onchain and deployed through native lending functionality, while Arf continues to handle underwriting and working capital decisions offchain,” the firm explained.
Arf also highlighted how the lending protocol will benefit the XRPL, RLUSD, and XRP. It noted that this would create a new source of revolving settlement liquidity on the XRP Ledger, with RLUSD powering the credit flows and XRP supporting the underlying network activity.
For more on stablecoins, check out the Best Stablecoin Infrastructure Provider Companies for Enterprises
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