Compliance
Arf and Ripple Collaborate to Enhance RLUSD Liquidity on XRP Ledger
Arf, a Swiss-regulated provider of short-term working capital, has announced a strategic partnership with Ripple to enhance settlement liquidity on the XRP Ledger for licensed cross-border payment companies. This collaboration, revealed on October 22, 2026, aims to offer fast, short-term capital through Ripple’s stablecoin, RLUSD.
The partnership addresses the pre-funding gap faced by payment firms, allowing them to borrow stablecoin liquidity directly on the XRP Ledger without the need to pre-fund receiving accounts. Arf typically lends for short durations of 1 to 5 days, facilitating settlements and enabling firms to repay once their own funds are received.
The initial phase of this rollout focuses on providing RLUSD liquidity on the XRP Ledger, with plans to integrate XRPL’s native lending features in subsequent phases. Arf has reported processing approximately $10 billion in annual settlement volume with a 0% default rate over more than 1,400 days of operation.
Previously, Arf operated on the Stellar network before merging with Huma Finance in 2024, expanding its operational reach. The partnership with Ripple is expected to significantly benefit licensed money service businesses by reducing the costs associated with idle capital in pre-funding accounts.
As the XRPL’s native lending features become operational, the partnership's impact on the payment sector will likely evolve, contingent on regulatory attitudes towards stablecoin-based credit arrangements.
FAQ
What is the purpose of the partnership between Arf and Ripple?
The partnership aims to enhance settlement liquidity on the XRP Ledger for licensed cross-border payment companies by providing fast, short-term capital through Ripple’s stablecoin, RLUSD.
How does Arf's lending model work?
Arf typically lends for short durations of 1 to 5 days, allowing payment firms to borrow stablecoin liquidity directly on the XRP Ledger without pre-funding receiving accounts, facilitating settlements until their own funds are received.
What is RLUSD and how is it used in this collaboration?
RLUSD is Ripple’s stablecoin, which will be used to provide liquidity on the XRP Ledger, helping payment firms address the pre-funding gap and reducing costs associated with idle capital.
What has been Arf's performance in terms of settlement volume?
Arf has reported processing approximately $10 billion in annual settlement volume with a 0% default rate over more than 1,400 days of operation.
What are the future plans for this partnership?
The initial phase focuses on providing RLUSD liquidity, with plans to integrate XRPL’s native lending features in subsequent phases to further enhance the partnership's impact on the payment sector.