Ripple is partnering with Swiss platform Arf to offer short-term RLUSD funding to approved payment companies on the XRP Ledger. Announced on October 22, 2026, this service starts without XRPL’s native lending protocol. The latter is still awaiting a vote from validators.
In brief
- Ripple and Arf announce short funding in RLUSD on XRP Ledger on October 22.
- Advances are generally repaid within one to five days.
- Arf reports approximately $10 billion in annual settlements.
- XRPL native lending is not activated due to lack of sufficient votes from validators.
- The amount of RLUSD deployed by Arf was not disclosed.
Arf brings RLUSD to payment companies on XRPL
Based in Zug, Arf will first supply liquidity in RLUSD directly on the XRP Ledger (XRPL). RLUSD is Ripple’s dollar-backed stablecoin launching in December 2024. These advances are typically repaid within one to five days, as payments settle.
In his press releaseArf asserts process approximately $10 billion in settlements annually with capital reused four times per month. These figures are communicated by the company itself. On the other hand, the amount of RLUSD that it will place on XRP Ledger is not specified.
Jasmine Cooper, product manager of RippleX at Ripple, believes that this use case corresponds to the vocation of XRPL and RLUSD.
A short credit to prefinance cross-border payments
A payment company must often advance funds to the destination country before collecting payment. In this sense, Arf emphasizes that bank credit lines can require months to set up and significant guarantees.
The mechanism is therefore simple: the company borrows RLUSD, settles the transaction and repays when its own funds arrive. Arf keeps credit scoring off-chain as well as financing decisions. He thus links this model to “PayFi”, finance built around payment flows.
Is XRP Ledger native lending already enabled?
No. Arf plans to use it once available. It is in fact based on two amendments:
- XLS-65 which creates single asset vaults;
- XLS-66 which allows fixed term loans.
As of October 19, XLS-66 had 19 votes out of 35 and XLS-65 had 21. Activation requires more than 80% support for two consecutive weeks. Halborn performed a new audit of the code and found no critical or high vulnerabilities.
What the announcement changes for RLUSD and XRP
For RLUSD, it adds a use of credit. Ripple indicated on August 25 that its capitalization exceeded 2 billion dollarsincluding nearly a billion issued on XRP Ledger. Other data, however, shows a decline of $117 billion in 15 months.
For XRP, no quantified effect has yet been demonstrated. Certainly, XRPL fees are paid in XRP. However, the volume of this funding remains unknown. No conclusion on the price of XRP can therefore be drawn from this. At the time of writing, this digital asset is trading around $1.30.
Nevertheless, three elements to watch closely in the coming days :
- the evolution of votes on XLS-65 and XLS-66;
- the amount of RLUSD actually deployed by Arf;
- the onchain data that Arf makes available.
Ripple (XRP) and Arf are therefore launching short funding in RLUSD on XRPL, but its volume remains unknown. Its extension to the native loan depends on a vote still far from the required threshold. The next few weeks will tell if usage follows the announcement.
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