[DigitalToday intern reporter Seung-a Yoo] Ripple is teaming up with DriveWealth to apply blockchain-based payments and stablecoin settlement services to traditional financial infrastructure. The plan is to streamline funding and settlement for institutional clients and broaden cooperation into digital asset custody and equity financing.

On Oct. 14 (local time), blockchain media outlet U.Today reported that DriveWealth is a brokerage infrastructure company that provides U.S. stock investment and trading services to more than 100 partners worldwide, including fintech companies, digital wallets and financial institutions. The companies plan to expand blockchain-based financial services by linking Ripple’s institutional payments infrastructure to DriveWealth’s global investment network.

The core of the cooperation is RLUSD, a stablecoin pegged to the U.S. dollar. DriveWealth plans to start institutional settlement using XRPL-based RLUSD in Europe first and then expand to the United States. It will also use Ripple’s stablecoin minting and burning functions.

The companies plan to allow institutional clients to fund and manage collateral accounts with stablecoins. They explained that using RLUSD enables rapid exchange with traditional fiat currencies and fund transfers, which can reduce reliance on existing bank wire transfers that take a long time to process in cross-border transactions.

DriveWealth is focusing on the gap between the speed of fund transfers and equity settlement cycles. Institutional clients that need to secure funds in line with stock trading and settlement schedules can face constraints in managing trading funds if cross-border remittances are delayed. Stablecoin-based settlement can be an alternative that reduces such delays and increases efficiency in collateral management and fund operations.

The scope of cooperation could expand beyond payments and settlement to equity financing. DriveWealth and Ripple Prime are reviewing equity finance opportunities that could be provided through Ripple Prime’s Delta One business.

The partnership is seen as Ripple’s move to expand its business beyond the cryptocurrency market into traditional financial infrastructure. If DriveWealth’s investment platform network and Ripple’s payments and settlement technology are combined, institutional clients could gain new options for funding and collateral management. Whether RLUSD settlement starting in Europe expands to the United States and whether it links to equity financing will be a point to watch going forward.

DriveWealth and @Ripple are partnering to bring $RLUSD settlement, cross-border payments, and digital asset custody to clients around the world, starting in Europe. The future of financial markets is borderless, timeless, and limitless. https://t.co/kOfvIRJOQu https://t.co/pIiZn9LZwT