Key Takeaways:
- Ripple is in a partnership with DriveWealth, to secure the integration of the RLUSD settlement, cross-border payment capabilities, digital asset custody and institutional equity financing.
- With the initial rollout of stablecoins set to begin in Europe, then the USA.
- Ripple has a video conference with over 100 partners worldwide and will be introducing it to the DriveWealth platform.
DriveWealth, a brokerage infrastructure provider for fintechs and financial institutions across the globe. Announced on October 14, the agreement aims to connect traditional investing services with stablecoin settlement and blockchain-based payment rails.
RLUSD Targets Faster Brokerage Funding
The collaboration will initially involve Ripple’s stablecoin technology being used within DriveWealth’s settlement activities in Europe, potentially extending to the U.S. in the future. RLUSD will feature on the XRP Ledger (XRPL), along with the minting and burning capability of Ripple.
It aims to facilitate the transfer of assets into collateral accounts for the brokerage clients without doing anything but using wire transfers. With the proposed scheme, investors should be able to place trades with stablecoins that can be repatriated to cash very soon.
The firms are fixing a TIMING PROBLEM in financial markets. U.S. equities settle T+1 and international bank transfers can be longer. These delays can result in capital being held captive between deals and a need for extra liquidity.
Read More: Ripple Says $XRP, RLUSD Could Turn 24/7 Crypto Into a CFO Treasury Tool
RLUSD Gains Another Institutional Use Case
RLUSD is Ripple’s USD stablecoin, pegged to the price of the U.S. dollar. If it is integrated into DriveWealth’s infrastructure, it will provide a broader solution than just crypto trading, adding to the funding and settlement for conventional investment accounts.
The statement did not include any specifics regarding expected transactions or a launch date nor the exact date of U.S. expansion.
Four Areas of Financial Infrastructure
The agreement is not limited to settlement of stablecoins. By adding support for Ripple Payments, DriveWealth will make it easier to accept funds from its international partners for its global brokerage network.
European digital asset custody for DriveWealth is another focus for the companies, and other markets will be explored over time. DriveWealth and Ripple Prime separately are looking at equity financing programs in the Delta One business that covers U.S. equities and equity derivatives on which Ripple Prime operates.
These efforts are all designed to tie payments, custody, treasury and trading together. Additionally, DriveWealth has plans to place its treasury and custody platform on top of the Ripple network, providing clients with a more integrated approach to managing dollars, stablecoins and crypto assets.
DriveWealth Network Could Extend Ripple’s Reach
DriveWealth offers brokerage-as-a-service infrastructure for U.S.-market access to over 100 partners worldwide, including fintech, digital wallet and financial organizations.
That network gives Ripple a potential route to introduce its digital asset services into existing investment platforms rather than relying solely on direct crypto adoption. DriveWealth CEO Naureen Hassan said the company had already enabled 24/5 trading and now wanted funding capabilities that better match market access.
Read More: Ripple CTO Holds XRP Only After Massive Gains, Warns Crypto Investors to Sell Some
