C2FO plans to pay suppliers in seconds instead of days by settling its Instant Pay financing in RLUSD, Ripple’s US dollar stablecoin, on the XRP Ledger. The companies announced the plan in New York on 27 October. Ripple also expanded its work with BNY, which now holds XRP and RLUSD for custody clients and intends to finance trade on the same ledger.
The mechanics don’t change for the buyer. Suppliers get paid early on approved invoices, the invoice terms and due dates stay the same, and outside capital providers fund the early payments. Businesses keep using C2FO as they do now. Instant Pay is not yet generally available, and businesses can join a waitlist.
“Working with Ripple and leveraging XRPL, we have built a new model for financing approved receivables,” said Ragui Selwanes, President and COO Americas at C2FO.
BNY already holds the reserves backing RLUSD. Its digital asset custody platform now supports XRP and RLUSD for eligible clients. BNY and Ripple plan to let BNY clients create and redeem RLUSD directly through the bank. They also intend to develop tokenised trade finance on the XRP Ledger, depending on client demand, starting with a supply chain finance project with C2FO aimed at widening investor access to receivables.
RLUSD has a market capitalisation of about $2.5 billion. “We’re moving past the initial issuance of assets onchain,” said Monica Long, President of Ripple.
Digital Trade Outlook’s View: Receivables Are the Real Prize
Banks ration supplier finance because it uses their balance sheet. If approved invoices sit on a public ledger with BNY holding the assets, investors can buy them directly. Suppliers get cash sooner from more sources. Banks that earn a lending margin on supply chain finance will now compete with investors who don’t need a bank to take the risk.
Related on Digital Trade Outlook
- Cross River Puts Ripple’s RLUSD Stablecoin Alongside ACH and Wires in Its Core Banking System
- Swift’s blockchain ledger goes live as 17 banks pilot tokenised cross-border payments
- Ripple Embeds Digital Asset Capabilities into Corporate Treasury Systems
Image: Ripple, C2FO, BNY