Ripple gets into lending business with the new Credit Lines for global payment options as we find out more in our latest Ripple news.
The Silicon Valley-based fintech announced its Line of Credit for customers using the on-demand liquidity service according to a company blog post. The company said:
“This is our first time testing a product offering in the lending space. We may decide to build out a more robust offering in the future.”
According to Ripple, the credit line will enable small-to-medium enterprises to expand their businesses where they usually face stalled growth which slows down their ability to compete with larger companies. These companies using ODL on RippleNET, which is a network of payment providers that will become able to purchase XRP From ripple on credit and will be charged a fee for the borrowed amount. The service is designed to facilitate the lower-cost financing for cross-border payments compared to the traditional options and was also trialed by RippleNew customers via a pilot program.
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
ODL uses XRP as a bridge cryptocurrency to facilitate cross-border payments. So if a Canadian business that has to pay a supplier in some other country and can’t find a foreign exchange dealer that will want to exchange money, this way they can convert the money in and out of XRP fast. At the same time, the credit line means that the Canadian firm doesn’t have to front the money as it locks it in a rate at the time of payment and then repays ripple when it gets convenient. Ripple gets into lending with 6.2 billion XRP in stash accounts. This amounts to 6% of the total supply when counting the 45 billion in circulation and about 48.6 billion in escrow. The company sells XRP into the market periodically.
Today, we launched Line of Credit—a new beta service that allows #RippleNet customers using On-Demand Liquidity to instantly source capital and initiate payments using XRP. Read more on Insights: https://t.co/2DHVXa2yD1
— Ripple (@Ripple) October 8, 2020
As we reported earlier in our XRP news, Ripple considers moving out of the US, as the Executive Chairman of the company said that the US regulation climate is unfavorable towards crypto companies. He said during the LA Blockchain Summit that Ripple is considering to move out of the states to places like Asia or Europe. Ripple Executive Chairman Chris Larsen said that his company which is based in San Francisco will move abroad if the USA doesn’t create a regulatory environment that will allow crypto companies to compete fairly and globally.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]