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Ripple yesterday unveiled its credit line offering to provide working capital to commercial payment service providers to purchase XRP for use in its on-demand liquidity solution (ODL). ODL is a RippleNet service that uses XRP as an intermediary currency to make cross-border payments. Payment service providers such as remittance companies find ODL attractive because it reduces the need to use matching bank accounts, which payment providers often struggle with. Most existing banks that use the RippleNet messaging service do not use XRP or ODL.
Ripple has extensive XRP for making these loans. It currently sits on a stock of 6.2 billion XRP worth $ 1.55 billion.
In the announcement, Ripple said the solution has already been tested with money transfer companies and has opened a waiting list. Payment terms will likely depend on the applicant, but the website says a fixed refund schedule will be organized. When funds are repaid, more credit is automatically made available.
Ripple hasn’t been shy about supporting initiatives with significant funds. He set up an investment arm, Xpring, which spent $ 500 million in one year. Two of those were large layouts of $ 100 million in the gaming industry and $ 260 million in Coil, co-founded by the CTO of Ripple to provide content payments. Xpring has now evolved into RippleX, which provides technical tools to help developers integrate XRP into applications.
In other recent changes, XRP now has the XRP Ledger Foundation, a move aimed at distancing Ripple from XRP governance. We speculated that one of the purposes is to prove that Ripple does not control XRP, something that has been the subject of recent controversy.
Also last week, Ripple has become a carbon-free blockchain.
