Markets · Stablecoins
DriveWealth and Ripple said on Oct. 14 they are partnering on stablecoin settlement, payments and custody, while an equity-financing tie-up through Ripple Prime remains only under exploration.
DriveWealth, the Brokerage-as-a-Service platform behind investing apps at more than 100 partners, is integrating Ripple's stablecoin infrastructure to support settlement in Europe, the companies said in a release on Oct. 14 (source 1). The integration will use RLUSD, which Ripple describes as its "USD stablecoin for institutions" (source 2), on the XRP Ledger, "alongside Ripple mint and burn capabilities", with plans to expand to the U.S. (source 1).
The problem the companies describe is a timing gap. U.S. equities now settle on a T+1 basis, the release says, "while moving dollars across borders can take longer, creating a mismatch that can trap capital, increase funding requirements, and make it harder for financial institutions and fintechs to scale efficiently" (source 1).
Settlement is one of four areas. DriveWealth is also integrating Ripple Payments "to support cross-border acceptance from its global partners," which the release says will help streamline how funds move into DriveWealth across markets (source 1).
Custody is the third. DriveWealth is working with Ripple to support its digital asset custody needs in Europe, "with plans to expand to additional markets over time" (source 1). The release names no additional markets and no dates.
The fourth is not a deal. DriveWealth and Ripple Prime "are exploring opportunities across equity financing through Ripple Prime's Delta One business," the release says (source 1). Nothing has been agreed on that front, and the release gives no terms, size or timeline.
| Area (source 1) | What the release says | Where |
|---|---|---|
| Stablecoin settlement | RLUSD on the XRPL, with Ripple mint and burn | Europe, U.S. planned |
| Payments | Ripple Payments for cross-border acceptance | Global partners |
| Custody | Support for digital asset custody needs | Europe, more markets planned |
| Equity financing | Exploring, via Ripple Prime's Delta One business | Not agreed |
For clients, the pitch is speed. The release says DriveWealth clients "can instantly fund and manage their collateral accounts using stablecoins that convert to cash in near real time instead of waiting on a bank wire" (source 1). It adds that DriveWealth is bringing its treasury and custody infrastructure onto Ripple's rails to give clients one real-time view of their money in dollars, stablecoins or crypto (source 1).
"We've already enabled 24/5 trading; now we need the funding to match, so clients can move with the markets instead of waiting for them," said Naureen Hassan, Chief Executive Officer of DriveWealth (source 1). "Our partnership with Ripple empowers us to extend the same funding, and custody experience our clients already rely on to stablecoins and digital assets, so their capital keeps working around the clock instead of sitting idle overnight or over a weekend. It's another step toward making DriveWealth a true global, unified, always-on access point to the markets our clients want to reach."
"DriveWealth came to Ripple with a specific challenge around cross-border settlement, but it quickly became clear there was an opportunity to do much more together," said Jack McDonald, SVP of Stablecoins at Ripple (source 1). "By integrating Ripple's full product suite into DriveWealth, we're modernizing how money moves and is supported across trading, custody and settlement."
The objection is scale. The release gives no volumes, no RLUSD amounts, no launch dates for Europe or the U.S., and no financial terms (source 1). It does not say which DriveWealth partners or client types will use stablecoin funding first, or how the U.S. expansion would be handled.
The tell will be the U.S. leg. Europe is where settlement and custody start; whether RLUSD settlement reaches DriveWealth's U.S. business, and whether the Ripple Prime talks turn into an agreement, will show how far this goes. The companies said they will discuss the partnership at Ripple Swell in New York on Oct. 28 (source 1).
Holding the Corner.
Not financial advice.