By cryptoadmin Ripple announced that Arf, a company that provides liquidity to cross-border payment companies, is preparing to offer short-term working capital on the $XRP Ledger using $RLUSD. The collaboration focuses on the financing needs that arise between the start of a transfer and the completion of the final settlement in international payments.
Payment companies may need to hold funds in advance to complete transactions in different countries. This results in money sitting in specific accounts, reducing the capital available to the companies. ARF’s approach aims to bridge this gap with short-term liquidity.
Related News BREAKING: Coinbase Is Delisting an Altcoin
Ripple stated that $RLUSD and $XRP Ledger are designed to support these types of settlement needs. The announcement specifically emphasized that the target audience is licensed payment companies.
The key point here is that the announcement does not include a loan product for individual investors or a direct $XRP purchase program. The focus of the collaboration is on using the dollar-backed $RLUSD in the daily financing processes of payment companies.
The parties did not disclose a total financing commitment in their official statement.
*This is not investment advice.