DriveWealth Taps RLUSD for the Cross-Border Funding Problem Behind Stock Trading
TL;DR: DriveWealth plans to combine Ripple’s stablecoin, funds and custody expertise, initially specializing in European settlement.
Investors can commerce US shares by way of digital apps at virtually any hour, however transferring the money wanted to fund these trades nonetheless runs into banking cutoffs. A newly introduced partnership between DriveWealth and Ripple goals to shut that hole utilizing stablecoin infrastructure.
On October 14 the firms set out plans for RLUSD settlement on the XRP Ledger, starting in Europe with a potential US growth. DriveWealth can also be integrating Ripple Payments for cross-border funding and exploring Ripple custody and prime-brokerage providers. The launch describes each integrations and areas nonetheless underneath exploration; it doesn’t imply each buyer can already settle in RLUSD.
This is a sensible institutional use case. Even with US fairness settlement working at T+1, worldwide transfers can maintain up shopping for energy and go away brokers managing money buffers throughout markets. Funds that transfer extra rapidly may cut back a few of that operational drag, although the conversion between stablecoins and financial institution cash nonetheless requires dependable counterparties and controls.
DriveWealth provides brokerage infrastructure to greater than 100 companions. If the promised settlement enhancements attain manufacturing, they might change into seen inside acquainted investing purposes quite than as a standalone crypto product. The take a look at can be whether or not stablecoin funding makes the end-to-end buyer expertise measurably higher.
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