Ripple and DriveWealth announced a partnership on October 14 to accelerate funding for more than 100 financial partners globally, including fintechs and digital wallets. The collaboration targets a timing mismatch between extended trading hours and traditional bank transfer windows.
DriveWealth CEO Naureen Hassan said the company has already enabled 24-hour, five-day-a-week trading but needs funding capabilities to match. The partnership addresses delays in U.S. securities settlement, which occurs one business day after trading under the T+1 cycle that took effect on May 28, 2024. Cross-border dollar transfers can take longer, creating additional constraints on capital availability.
Stablecoin Integration for Faster Settlement
DriveWealth is integrating Ripple's stablecoin infrastructure to speed settlement across borders. The integration uses Ripple USD (RLUSD) on the XRP Ledger, a dollar-backed token designed to track the U.S. dollar's value. RLUSD is backed one-to-one by dollar reserves including cash and U.S. Treasuries, according to Ripple.
The workflow converts RLUSD tokens into cash in near real time to support brokerage collateral accounts, which hold assets securing financial obligations. DriveWealth is initially deploying this solution in Europe, with plans to expand to the United States. The integration also includes Ripple Payments, a cross-border payment service for accepting funds from global partners.
Ripple Mint, launched July 23, provides the platform for issuing, redeeming, and managing RLUSD tokens. It offers a web interface and application programming interfaces for redemptions, balance checks, and transaction tracking.
Expanding Custody and Financing Services
Beyond settlement, the companies are collaborating on digital asset custody in Europe, with expansion to additional markets planned. Custody involves safeguarding assets on behalf of their owners. On October 12, Standard Chartered began offering RLUSD custody on the XRP Ledger for eligible institutional holders.
Ripple and DriveWealth are also exploring equity financing through Ripple Prime, an institutional brokerage business providing trading, clearing, and financing services. This includes Delta One operations offering equity derivatives such as total return swaps, which provide economic exposure to assets without direct ownership.
According to the announcement, Ripple holds more than 85 licenses supporting its blockchain services for financial institutions. The companies plan to discuss the partnership at Ripple Swell, the firm's annual conference for financial institutions and blockchain businesses, scheduled for October 28 in New York City.
