C2FO and Ripple target instant supplier payments and tokenised receivables finance

Working-capital platform C2FO has partnered with Ripple to develop a system that could reduce settlement times for approved supplier invoices from several days to seconds, while BNY explores a related initiative to expand institutional investment in tokenised receivables.

Announced on 27 October, the collaboration will bring financing and settlement activity supporting C2FO’s new Instant Pay service onto the XRP Ledger, using Ripple’s US dollar-backed stablecoin, RLUSD, to transfer funds.

The arrangement targets a significant source of friction in supply chain finance. Although suppliers can secure early payment against approved invoices through established financing programmes, the transfer of funds can still be delayed by conventional banking and clearing processes.

Under the proposed model, participating capital providers will fund early payments through C2FO, with settlement executed on the XRP Ledger. The companies say the technology can process transactions in approximately three to five seconds, potentially giving suppliers faster access to liquidity without changing their underlying invoice terms.

The distinction is important. The commercial financing transaction remains separate from the technology used to settle it. Capital providers will still need to assess the underlying receivables and provide funding, while the blockchain infrastructure is intended to accelerate the movement of money.

C2FO is initially restricting Instant Pay to the United States, with businesses invited to join a waiting list ahead of a limited rollout. The companies have not disclosed committed funding volumes, participating capital providers or the amount of supplier payments already processed through the new service.

Separately, Ripple and BNY announced plans to explore the tokenisation of trade finance assets, including a proposed supply chain finance initiative involving C2FO.

That initiative would examine how approved receivables could be digitally represented and made more accessible to institutional investors. It remains exploratory, rather than an operational receivables-financing market.

BNY has also expanded its digital asset custody platform to support XRP and RLUSD for eligible institutional clients, providing infrastructure that could support future financing and settlement arrangements.

The developments connect two previously separate ambitions in digital trade finance: accelerating supplier payments and widening the pool of investors able to finance approved receivables.

Their commercial significance will depend on actual supplier adoption, institutional participation and evidence that faster settlement can be delivered at scale without introducing additional operational or counterparty risk.