Ripple and C2FO are bringing invoice financing and settlement to the XRP Ledger, using Ripple’s dollar-backed stablecoin, RLUSD. The initiative targets bank transfer delays that leave suppliers waiting days for approved early payments.
Key Takeaways
- Participating capital providers will fund instant supplier payments.
- Existing invoice terms and due dates will remain unchanged.
- Access will expand through a limited rollout over the coming months.
XRP Ledger Targets Settlement Delays
Suppliers could gain faster access to cash from approved invoices through an initiative announced Oct. 27 at Ripple Swell in New York. Working capital platform C2FO and blockchain infrastructure provider Ripple outlined plans to bring C2FO Instant Pay financing and settlement onto the XRP Ledger (XRPL), with Ripple USD (RLUSD) serving as the settlement asset.
Payments would settle on the XRP Ledger in three to five seconds, Ripple stated. For suppliers, C2FO said the money would reach their bank accounts within minutes after an invoice is confirmed for early payment, allowing businesses to put those funds to use sooner.
Businesses often face payment terms of 30, 60, or 90 days after delivering goods and services, tying up money needed for payroll, inventory, and orders. Even after an early payment is approved, traditional bank processing can prolong the wait.
Ragui Selwanes, C2FO’s president and chief operating officer for the Americas, noted:
“Working with Ripple and leveraging XRPL, we have built a new model for financing approved receivables that has the potential to broaden access to capital while preserving the relationships and experience our customers already trust.”
Capital Providers Fund Early Invoice Payments
Businesses will continue requesting early payments through C2FO, while participating capital providers supply the funding settled on XRPL. The arrangement preserves agreed invoice terms and due dates. Under C2FO’s existing early-payment process, suppliers select approved invoices and offer a discount to receive their money sooner.
RLUSD will provide the dollar-linked settlement asset for those transactions, extending the use of dollar-backed stablecoins for payment settlement. The ledger operates around the clock, allowing settlement outside conventional banking hours. Ripple describes transaction costs as a fraction of a cent.
Instant Pay uses the existing C2FO platform and login, with a one-time setup to connect a bank account and confirm remittance details. The product is launching through a limited rollout over the coming months, and businesses can join a waitlist as access expands. Instant Pay will be available only in the U.S. at launch.
Commercial Payments Extend RLUSD’s Use
A related RLUSD financing partnership with Arf targets licensed payment companies awaiting cross-border settlements. Arf provides short-term funding to financial institutions handling those transfers. Its Oct. 22 announcement outlined the use of RLUSD for payment-company liquidity, while C2FO focuses on approved supplier invoices.
Separately, Ripple Treasury is targeting businesses’ idle operating cash through returns on qualifying corporate RLUSD holdings. Unveiled Oct. 26, the offering covers eligible balances held overnight, over weekends, and during holidays, subject to program requirements.
Markus Infanger, senior vice president of RippleX, Ripple’s team supporting developers building on XRPL, described the commercial opportunity:
“Together with C2FO, this creates an opportunity to address billions of dollars in commercial activity and make approved receivables easier to finance.”
