Ripple is not slowing down on the rapid expansion of its ecosystem as it continues to introduce new developments to boost the utility and adoption of its stablecoin.
As part of its continued developments, Ripple has just announced today that it has signed a new partnership with global liquidity and settlement platform, Arf.
RLUSD gains utility boost
According to the announcement, the partnership aims to bring settlement liquidity powered by its native stablecoin, RLUSD, to the XRP Ledger.
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With this development, Ripple is on the move to help licensed payment companies access short-term working capital for cross-border transactions.
Following the partnership, RLUSD will begin to provide liquidity to payment companies while they wait for international transfers to settle.
The development comes as part of both companies' efforts to resolve a major challenge in the global payments industry, where businesses often need to lock up significant amounts of capital across different markets to keep transactions moving.
Cross-border payments just got better with RLUSD
Notably, the partnership requires Arf to provide direct RLUSD settlement liquidity on the XRP Ledger. This way, licensed payment providers can fund transactions without keeping large amounts of capital tied up while waiting for settlements.
The company further specified that its settlement liquidity only operates with a repayment period of one to five days.
As such, the company will be able to ensure that the same capital is deployed repeatedly as payments are completed, efficiently facilitating stablecoin-powered cross-border payments among firms across the globe.