đ§ Ripple lands a new partnership: Arf brings âcross-border pre-fundingâ to the XRP Ledgerâbut $10 billion isnât buying pressure
On October 22, Swiss-licensed PayFi platform Arf announced a partnership with Ripple to provide licensed cross-border payment companies with short-term working capital in RLUSD on the XRP Ledger. Rippleâs official account reposted the announcement, saying settlement liquidity is exactly the kind of use case XRPL and RLUSD are designed to support.
First, what problem does it solve?
đš Cross-border payment companies often have to pre-fund accounts in destination markets, with the money tied up for days until settlement is complete
đš Arfâs approach is to lend RLUSD during the settlement period, then get it repaid once payments settle. News roundups say the cycle is about 1 to 5 days, with funds reused on a rolling basis
đš Some posts mention that once XRPLâs native lending feature goes live, Arf plans to connect directly to the protocol
Now for a bit of a reality check.
Headlines splashed across social media saying â$10 billion Arf-Ripple partnershipâ can easily give the impression that $10 billion is about to flow in. According to CoinDesk, that $10 billion refers to Arfâs annual settlement volumeânot an investment, and not buy orders for XRP. RLUSD is a dollar-backed stablecoin, and the lending is done in RLUSD, which does not directly translate into demand for XRP.
Personally, I think this kind of partnership carries more weight than a celebrity endorsement, because it addresses a real cash-flow need at a real business. But the figures to watch are what happens next: whether the amount of RLUSD in circulation on XRPL increases, how much Arf actually lends out, and when the lending feature really goes live. The partnership announcement is just the starting point.
Do you think âon-chain pre-funding for businessesâ could become the next major battleground for stablecoins, or is this just another slide-deck partnership?
#XRP #RLUSD #Ripple #Stablecoins
On October 22, Swiss-licensed PayFi platform Arf announced a partnership with Ripple to provide licensed cross-border payment companies with short-term working capital in RLUSD on the XRP Ledger. Rippleâs official account reposted the announcement, saying settlement liquidity is exactly the kind of use case XRPL and RLUSD are designed to support.
First, what problem does it solve?
đš Cross-border payment companies often have to pre-fund accounts in destination markets, with the money tied up for days until settlement is complete
đš Arfâs approach is to lend RLUSD during the settlement period, then get it repaid once payments settle. News roundups say the cycle is about 1 to 5 days, with funds reused on a rolling basis
đš Some posts mention that once XRPLâs native lending feature goes live, Arf plans to connect directly to the protocol
Now for a bit of a reality check.
Headlines splashed across social media saying â$10 billion Arf-Ripple partnershipâ can easily give the impression that $10 billion is about to flow in. According to CoinDesk, that $10 billion refers to Arfâs annual settlement volumeânot an investment, and not buy orders for XRP. RLUSD is a dollar-backed stablecoin, and the lending is done in RLUSD, which does not directly translate into demand for XRP.
Personally, I think this kind of partnership carries more weight than a celebrity endorsement, because it addresses a real cash-flow need at a real business. But the figures to watch are what happens next: whether the amount of RLUSD in circulation on XRPL increases, how much Arf actually lends out, and when the lending feature really goes live. The partnership announcement is just the starting point.
Do you think âon-chain pre-funding for businessesâ could become the next major battleground for stablecoins, or is this just another slide-deck partnership?
#XRP #RLUSD #Ripple #Stablecoins