Ripple launched its Line of Credit for customers using its On-Demand Liquidity (ODL) service
On Friday, San Francisco-based blockchain company Ripple has launched a lending offering, called Line of Credit for customers using its On-Demand Liquidity (ODL) service, per a company blog post.
The new service — which has already been piloted by members of the RippleNet network is currently in a beta testing stage.
“Those using ODL on RippleNet can purchase XRP from Ripple on credit—customers are charged one fee on the amount borrowed, with no hidden fees, and can receive approvals faster than through traditional means. RippleNet customers simply take advantage of one simple XRP-based arrangement everywhere that ODL is available, regardless of sending destination or fiat currency and costs a lot less than most other available credit options”, according to the company’s blog.
In his Twitter statement, Asheesh Birla, the newly appointed general manager of RippleNet, claims that capital crunch is one of the biggest obstacles for the growth of small- and medium-sized startups.
Line of Credit allows you to scale & accelerate your business performance – pilot customers are already seeing the results. RippleNet is evolving: from bi-directional messaging, settlement, liquidity management to lending. $XRP is the key behind what only RippleNet can offer. 4/5
— Asheesh Birla (@ashgoblue) October 8, 2020
“Line of Credit is the latest step in Ripple’s vision to enable the Internet of Value and break down the barriers in finance. It’s an exclusive new service that financial institutions and money service providers can use to consistently provide customers with cost-effective, real-time cross-border payments”, a company spokesperson confirmed to AZCoin News.
Ripple holds 6.2 billion XRP (worth about $1.55 billion at current prices). Its stash accounts for 6% of the total XRP supply when counting both the 45 billion in circulation and 48.6 billion in escrow. The company periodically sells XRP into the market.
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