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In the letter
- Ripple bought nearly $ 46 million worth of XRP in the third quarter of 2020.
- Ripple had previously said it was in the business of buying XRP.
- Ripple said the purchase was designed to support healthy markets.
Ripple, the company that focuses on the XRP cryptocurrency, bought just under $ 50 million during the third quarter of this year. announced yesterday. This is despite having a huge supply – nearly half of the entire XRP supply – in its escrow accounts, to sell to other companies.
“As the owner of XRP, Ripple believes that proactive communication and transparency are part of being a responsible stakeholder,” Ripple said in the market report.
The purchase is no surprise given the company’s behavior earlier this year. Ripple indicated in its Q2 2020 XRP Markets report which was in the business of buying XRP.
Ripple’s decision to buy XRP cryptocurrency was made to “support healthy markets” and, in the short term, serves as a product solution for the beta of the credit line.
Ripple’s line of credit is a new beta service on RippleNet. It allows clients to use liquidity on demand (ODL) to raise capital on demand. This solution offers customers the opportunity to purchase XRP from Ripple directly on credit, which provides capital upfront. Ripple suggests this can “help accelerate the performance and scalability of their business.”
In the longer term, Ripple is developing these ODL capabilities to raise XRP liquidity “from the open market, not just Ripple”.
In the third quarter, Ripple’s focus on OLD related sales becomes very clear from the numbers. According to a sales summary table provided by the company, Ripple made $ 81 million in ODL sales, a significant increase from the $ 32 million it made in the previous quarter.
