Arf partners with Ripple to support cross-border payments

By Divya Shah

Why it matters: The partnership showcases how stablecoins are evolving beyond payments into liquidity and working-capital solutions. By combining RLUSD with XRPL infrastructure, Arf and Ripple are addressing one of the biggest challenges in cross-border payments: the need for readily available settlement capital.

Arf, a Swiss-regulated financial institution, has partnered with Ripple to provide RLUSD-powered settlement liquidity to licensed cross-border payment companies operating on the XRP Ledger (XRPL). 

The collaboration aims to help payment providers access short-term working capital needed to support cross-border transactions while awaiting settlement of underlying payment flows. By leveraging RLUSD, Ripple’s US dollar-pegged stablecoin, the partners seek to improve liquidity management and accelerate payment settlement processes. 

Ali Erhat Nalbant, Co-founder and CEO of Arf, said, “Payment companies need capital to keep money moving while they wait for funds to settle. We’re meeting that need at scale, with $10 billion in annual settlement volume and capital turning over four times a month. Through this partnership with Ripple, we’re bringing stablecoin working capital to the XRP Ledger to help payment companies bridge that gap and support more payment volume.” 

The initiative combines XRPL’s blockchain-based settlement capabilities with RLUSD’s regulated stablecoin infrastructure, enabling payment firms to access liquidity without locking up significant capital. 

Jasmine Cooper, Head of Product for RippleX at Ripple, said, “Settlement liquidity is exactly the kind of use case XRPL and RLUSD are built to support. Payment companies need fast access to capital across borders, without tying up significant amounts of liquidity. XRPL provides fast, efficient settlement, while RLUSD provides a regulated dollar stablecoin. Arf brings deep experience in PayFi, helping companies access short-term capital to keep payments moving while they wait for funds to settle.” 

Looking ahead, Arf plans to migrate more of its settlement liquidity activity on-chain once XRPL’s native lending infrastructure becomes available. Under the model, capital allocation and liquidity deployment would take place through native lending functionality on the XRP Ledger, while Arf would continue to oversee underwriting and working capital decisions off-chain. 

The partnership reflects growing interest in PayFi solutions that combine stablecoins, blockchain networks and short-term financing to improve the efficiency of cross-border payments.