DriveWealth Uses RLUSD to Fix Stock Trading Cross-Border Funding
DriveWealth is partnering with Ripple to integrate RLUSD stablecoin settlement and payment solutions, aiming to overcome cross-border funding delays and traditional banking hour restrictions for international stock trading.
TL;DR: DriveWealth intends to incorporate Ripple’s custody, payments, and stablecoin solutions, starting with settlement processes in Europe.
While digital investing applications allow investors to trade US equities around the clock, transferring the necessary cash to back those trades continues to bump up against traditional banking hours. A fresh collaboration between Ripple and DriveWealth seeks to bridge this divide through the use of stablecoin technology.
The two firms revealed their strategy on October 14 to utilize RLUSD settlement on the XRP Ledger. The rollout kicks off in Europe, with potential plans for future expansion into the United States. Furthermore, DriveWealth is adopting Ripple Payments to handle cross-border funding while investigating Ripple’s prime-brokerage and custody offerings. While these developments cover both active integrations and exploratory phases, they do not guarantee immediate RLUSD settlement availability for all customers.
This initiative represents a tangible institutional application. Despite the shift of US equity settlement to a T+1 schedule, international money movements can still delay purchasing power, forcing brokers to maintain costly cash buffers across different regions. Accelerating these fund transfers could alleviate operational friction, provided the conversion processes between bank fiat and stablecoins maintain strong regulatory controls and reliable counterparties.
Providing brokerage infrastructure to over 100 partners, DriveWealth is positioned to embed these settlement enhancements directly into everyday investing apps rather than relegating them to an isolated cryptocurrency tool. Ultimately, success will hinge on whether stablecoin-powered funding delivers a noticeably superior end-user experience.
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Frequently Asked Questions
What is the main goal of the partnership between DriveWealth and Ripple?
The collaboration aims to solve the cross-border funding delays in stock trading by utilizing Ripple’s stablecoin and payment infrastructure.
Where will the RLUSD settlement be introduced first?
The rollout will begin in Europe, with future US expansion currently under consideration.
Can all DriveWealth customers currently settle trades using RLUSD?
No, the partnership includes both active integrations and features still under exploration, meaning RLUSD settlement is not yet available to every customer.
How many partners does DriveWealth supply with brokerage infrastructure?
DriveWealth provides brokerage infrastructure to more than 100 partners.