Arf launches a stablecoin-based transactional working capital credit line

Arf,Arf Credit is the innovative new product that will be launched by the first international payment network operating on stablecoins. Arf Credit will provide a working capital credit line that is available immediately to MSBs all over the globe.

Traditionally, a money transfer business (MSB), when sending money to another country, had to pre-fund the amount in the recipient country. This created tied capital, high potential cost and inefficiencies. What’s more, since cross-border transactions are often considered risky, access to credit has always been a major problem for MSBs.

Arf Credit was created to empower MSBs around the globe. It was founded by Arf co-founders who noticed that many MSBs faced difficulties with high prefunding requirements, limited access to working capital, and limited access.

Co-Founder Kazım Rıfat Özyılmaz saysThe MSBs have been a neglected player in the finance sector, particularly when it comes to accessing working capital. “Of course, the industry must manage risks—but it also has to find innovative ways to enable the growth of cross-border transactions,” he underlines.

“The real problem with the current cross-border payments industry is that when you’re successful as an MSB, you need more money to run it,” Says CEO and Co-Founder Ali Erhat Nalbant. “We developed Arf Credit as an API-based, transactional short-term working capital in USDC so that MSBs can use stablecoins without prefunding.”

There were many options, but most lenders could only serve customers who had long-term credit requirements or who needed a single payout route. It was difficult to apply and you had to repay the credit regardless of how it was used.

Co-Founder Berhan Kongel saysMSBs that are licensed can immediately get credit, with a 2-7 day repayment term. “Each eligible MSB is assigned a certain amount of credit based on its transactional volumes within the Arf Network. They only pay interest for the credit amount used, and can automate repayments,” he explains. 

“We are really excited to be a key player in enabling the cross-border payments industry to compliantly benefit from the blockchain and digital assets,” Ali Erhat Nalbant Says. “It was a much-needed improvement in global payments.”

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