Ripple, a fintech firm, has just revealed its Line of Credit for the customers who are using its On-Demand Liquidity (ODL) service. It has been revealed by the firm through a blog post on October 08, 2020. A spokesperson of the firm has revealed that this is the first time they are testing the product offering in the lending space. Also, the firm might provide more offerings in the future as well.
Ripple is aiming that their credit line will be helping the small-to-medium enterprises to expand their businesses. It will also help the firms to be able to compete with the larger firms out there.
It is also mentioned that the firms who have been using ODL on the RippleNet platform will be able to buy XRP from Ripple. These XRP’s will be brought on credit and the customers will be charged with a fee against the amount that is borrowed. The major focus behind building this service was lower-cost financing, especially for cross-border payments. The customers of RippleNet has already tested this service through a pilot program launched by the firm. All those people who use cross-border money transfers are experiencing the benefits of this service.
The main purpose of XRP with ODL service is to act as a bridge currency that will help facilitate the cross-border payments. Ripple holds 6.2 Billion XRP worth $1.55 billion approximately. It has been observed that the company keeps sending XRP’s into the market. According to the firm, the aim is to enable the “Internet of Value” by adding the Line of Credit and breaking the barriers which keep occurring in finance.