Arf Launches USDC-based Financing Solution for Licensed Financial Institutions

03/21/2023 12:57 • NFT Newsflash • 132 views

On March 21, the global settlement banking platform Arf launched an unsecured short-term working capital financing solution based on USDC for licensed financial institutions, and partnered with the Stellar Development Foundation to address the liquidity constraints faced by payment and remittance companies in cross-border payments.

Global Settlement Bank Platform Arf Launches USDC Unsecured Short Term Financing Scheme for Licensed Financial Institutions

On March 21, the global settlement banking platform Arf launched an unsecured short-term working capital financing solution based on USDC for licensed financial institutions. In this article, we will discuss this new solution and how it addresses the liquidity constraints faced by payment and remittance companies in cross-border payments.

Introduction to Arf

Arf is a global settlement banking platform that enables instant settlement of funds in any currency, anywhere in the world. The platform leverages blockchain technology to provide an efficient and secure way of settling cross-border transactions. Arf’s customers include remittance and payment companies, cryptocurrency exchanges, and other financial institutions.

The Need for Working Capital Financing in Cross-Border Payments

Payment and remittance companies face several challenges when it comes to cross-border payments, including high transaction fees, long settlement times, and the need for working capital to cover the costs of settling transactions. In order to provide instant settlement of funds, payment companies need to have a sufficient amount of working capital on hand. However, this can be difficult for smaller companies that may not have access to traditional financing sources.

Arf’s USDC-based Financing Solution

To address the liquidity constraints faced by payment and remittance companies, Arf has launched an unsecured short-term working capital financing solution based on USDC. USDC is a stablecoin that is pegged to the US dollar, providing a hedge against currency volatility.
Arf’s financing solution enables licensed financial institutions to borrow USDC for up to three months, with interest rates as low as 1%. The financing solution is unsecured, meaning that borrowers do not need to provide collateral to secure the loan. This makes it an attractive option for smaller payment and remittance companies that may not have the assets necessary to secure a traditional loan.

Partnership with Stellar Development Foundation

In addition to launching its financing solution, Arf has partnered with the Stellar Development Foundation to provide additional liquidity to payment and remittance companies. Stellar is a blockchain-based platform that enables fast and affordable cross-border payments. By partnering with Stellar, Arf is able to provide its customers with access to a broader range of financial products and services.

Conclusion

Arf’s new USDC-based financing solution and partnership with the Stellar Development Foundation are significant steps towards addressing the liquidity constraints faced by payment and remittance companies in cross-border payments. The solution provides an efficient and accessible way for these companies to access working capital, enabling them to provide faster and more affordable payment services to their customers.

FAQs

1. What is USDC?
USDC is a stablecoin that is pegged to the US dollar, providing a hedge against currency volatility.
2. What is Arf?
Arf is a global settlement banking platform that enables instant settlement of funds in any currency, anywhere in the world.
3. What is Stellar?
Stellar is a blockchain-based platform that enables fast and affordable cross-border payments.
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