Key facts
- Arf will use RLUSD to provide short-term working capital to payment companies.
- Payment companies typically repay capital within one to five days.
- Arf plans to manage capital on-chain via native lending functionality.
- RLUSD will power credit flows and XRP will support network activity.
Crypto firm Ripple has partnered with Arf to enhance RLUSD settlement liquidity on the XRP Ledger (XRPL). Arf will provide short-term working capital to licensed cross-border payment companies using the RLUSD stablecoin, which these companies typically repay within one to five days as they settle transactions.
This collaboration aims to expand the utility of RLUSD for global payments. Arf also intends to extend its settlement liquidity activities to the XRPL's native lending infrastructure once it becomes available, allowing capital to be managed on-chain while Arf handles underwriting and working capital decisions off-chain.
The partnership is expected to create a new source of revolving settlement liquidity on the XRP Ledger, with RLUSD powering credit flows and XRP supporting the underlying network activity.