Ripple, C2FO plan instant invoice payments on XRP Ledger

Suppliers using C2FO may be able to receive early payment on approved invoices in seconds, with settlement in RLUSD on the XRP Ledger, under a new initiative with Ripple. The plan could shorten the wait for cash without changing the invoice’s agreed due date.

Ripple’s Oct. 27 announcement says participating capital providers would fund the payments, while businesses would continue to access early payment through C2FO as they do today. C2FO says interested businesses can join a waitlist; the announcement gives no launch date or fee details.

How would the invoice payments work?

C2FO Instant Pay is intended to move the financing and settlement activity supporting early payments onto XRPL, a public blockchain, using Ripple’s US dollar-backed stablecoin RLUSD for settlement. Suppliers would receive funds in seconds rather than wait several days for bank transfers to clear, according to Ripple’s announcement with C2FO.

The payment would be funded by participating capital providers. The buyer’s payment terms and the invoice due date would stay as agreed, so the proposal concerns when suppliers receive funds, not when the buyer owes them.

What is BNY’s role in the proposal?

BNY and Ripple separately say they are exploring a supply-chain finance initiative with C2FO to expand investor access to receivables, the amounts owed on invoices. The bank’s announcement describes that work as an early step toward tokenized trade finance on XRPL, subject to client requirements, rather than a live financing service.

In the same announcement, BNY said it now supports XRP and RLUSD custody for eligible institutional clients and intends to enable clients to mint and redeem RLUSD through the bank. Those custody and stablecoin plans sit alongside the invoice-financing exploration; BNY did not announce that it will fund invoices. Its future product plans are subject to final BNY and regulatory approvals, according to BNY’s announcement.

What should suppliers check before using it?

The companies have not published a start date, eligibility rules, or the cost of receiving an invoice payment early. Suppliers should check C2FO’s terms for any discount or fee before opting in; the announcements do not say whether the new settlement option changes those costs.

Ripple says RLUSD has a market capitalization above $2.5 billion, with more than $1 billion issued on XRPL, and that the ledger settles transactions in three to five seconds. Those figures describe the stablecoin and network, not a guarantee of a supplier’s payment time or the availability of Instant Pay.

Source material

• Ripple’s announcement with C2FO — ripple.com
• BNY’s announcement — bny.com