Arf, the international payment banking platform licensed in Switzerland, has started to offer the world’s first unsecured, short-term, USDC-based working capital financing solution for licensed financial institutions with the support of the Stellar Development Foundation.
Arf, the international payment banking platform licensed in Switzerland, has started to offer the world’s first unsecured, short-term, USDC-based working capital financing solution for licensed financial institutions with the support of the Stellar Development Foundation.
Making international payments faster, cheaper, more transparent and inclusive is one of the top priorities for achieving global economic development and prosperity. However, the capital-intensive international payments sector is still a challenging area for payment and money service companies with limited financial resources. Solutions that bridge Web3 and traditional finance promise to solve this problem.
International payments banking platform Arf and the Stellar Development Foundation, a non-profit organization that supports the growth and development of the open-source Stellar network, have teamed up to solve the liquidity problems that payment and money service companies face in international payments.
Arf’s Credit Line solution, powered by the Stellar network and Circle’s USDC, provides unsecured and short-term (1 to 5 days) working capital to qualified licensed financial institutions worldwide. With Arf Credit Line, financial institutions can send money to their partners abroad on the same day, without the need for prefunding or additional collateral. Arf Credit Line eliminates the capital-intensive business model for senders and counterparty risk for recipient parties in international payments. Moreover, since all these transactions are carried out on the blockchain with USDC, money transfers can be tracked transparently without any intermediaries.
Arf Co-Founder and CEO Ali Erhat Nalbant said, “Today, more than $4 trillion of capital that can be used for the growth and development of the industry is idle in pre-funded accounts.” “Arf Credit Line is unlocking this locked-in capital, paving the way for trillions of dollars of growth. Currently, we enable more than 800 money transfer centers around the world to send money to their partners in different countries on the same day and in compliance with regulations,” Nalbant said, adding that “therefore, we pave the way for them to grow and compete with global players.”
“We support Arf in developing real applications that transparently solve the liquidity constraints of global payments with the decentralized nature of cryptocurrencies,” said Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation and continued saying: “Our commitment to making financial services more accessible to everyone is further strengthened with solutions like Arf Credit Line that open a new category.”
In just four months from launch, Arf Credit Line has generated more than $80 million in loans to licensed financial institutions around the world, creating a total on-chain USDC volume of $150 million. Arf Credit Line sets an example by providing working capital loans with USDC, making payments more transparent, accessible and real-time.
Source: Egirisim / Prepared by Irem Yildiz