Yesterday Ripple unveiled its Line of Credit offering to provide commercial payment providers with working capital to buy XRP for use in its On-Demand Liquidity (ODL) solution. ODL is a RippleNet service that leverages XRP as a go-between currency to make cross border payments. Payment providers such as remittance firms find ODL attractive because it reduces the need to use correspondent bank accounts, which payment providers often struggle with. Most of the incumbent banks that use the RippleNet messaging service don’t use XRP or ODL.
Ripple has ample XRP to make these loans. It’s currently sitting on a stash of 6.2 billion XRP worth $1.55 billion.
In the announcement, Ripple said the solution has already been trialed with money transfer businesses, and it has opened a waiting list. The payment terms will likely depend on the applicant, but the website says a fixed repayment schedule will be arranged. When funds are repaid, more credit is automatically made available.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
