Strategic Partnership Expands RLUSD Adoption on XRPL

Ripple and Arf announced a collaboration on October 22, 2026, to supply RLUSD settlement liquidity on the XRP Ledger. The arrangement targets licensed payment companies handling remittances, card transactions and international transfers. It provides immediate access to short-term funding that the firms can deploy while awaiting final settlement of cross-border payments.

Arf, a Swiss-regulated platform, already manages approximately $10 billion in annual global settlement volume. Its capital turns over roughly four times per month, enabling repeated use of the same funds across successive transactions. Under the first phase of the deal, Arf supplies RLUSD directly on XRPL, with repayments typically due within one to five days once payments clear.

This structure addresses a longstanding challenge in global payments: the need for working capital in destination markets before incoming funds arrive. Traditional credit lines often require substantial collateral and months to set up, limiting flexibility when liquidity needs shift between corridors.

How the Liquidity Solution Works on XRPL

Licensed payment providers can obtain RLUSD financing without maintaining large capital balances across different countries and currencies. Arf’s existing infrastructure connects conventional bank accounts with stablecoin treasury services, so firms access funding through familiar systems while the underlying blockchain handles settlement on XRPL.

Arf continues to manage underwriting, credit decisions and working-capital arrangements off-chain. The ledger records the financing activity, with RLUSD serving as the asset for loans and repayments. XRP remains the native asset for transaction fees and applicable account reserves, keeping the two roles distinct.

The model supports capital efficiency by allowing the same funds to circulate quickly after each repayment. Arf reports a 0% default rate across more than 1,400 days of operations, reflecting its track record with regulated institutions.

Future Expansion Into Native XRPL Lending

Arf plans to move additional activity onto XRPL’s proposed native lending infrastructure once the required amendments receive validator approval. Single Asset Vaults would pool and manage funds directly on the ledger, while the Lending Protocol would enable structured loans backed by those vaults.

Arf has already built an implementation of the proposed specifications and will continue providing technical feedback. It would retain responsibility for borrower assessments and lending decisions off-chain, with on-chain records handling loan terms and repayments. The amendments, known as XLS-65 and XLS-66, must achieve more than 80% validator support for two consecutive weeks to activate on mainnet.

This evolution would create a new source of revolving settlement liquidity on XRPL, with RLUSD powering credit flows and XRP supporting network operations. Arf views the lending features as a natural extension of its PayFi business model, which applies credit and treasury services to payment flows.

The collaboration builds on Ripple’s broader push to integrate RLUSD into global payment infrastructure. It follows recent expansions that include access for fintech customers through bank core platforms and tokenized asset offerings on XRPL. Both companies expect the arrangement to reduce operational burdens and improve efficiency for licensed institutions engaged in stablecoin-powered cross-border payments.