Ripple’s new “Line of Credit” service is now live, giving the company’s customers an opportunity to borrow XRP for cross-border transactions.
Financial institutions and money service providers using the San Francisco startup’s XRP-powered, cross-border payment product, On-Demand Liquidity (ODL), can borrow Ripple’s native currency for a one-time fee via an approval system that will move faster than legacy financial options, according to a press release.
The XRP-based arrangement is the same in any location served by ODL, regardless of sending destination. Ripple also says it will be cheaper than most other available credit options.
Ripple says it is the company’s latest move to build out the Internet of Value and make money as easy to send and receive as email. Linked to ripple release that explains term.
“Unlike incumbents who have large balance sheets that allow them to scale their business quickly, many fintechs and small and medium-sized enterprises (SMEs) lack the capital and resources to compete. Faced with stalled growth, customers turn to creating bespoke credit arrangements – with each partner, in each destination market. Each arrangement requires additional overhead and management, making it a slow, burdensome and an ultimately inefficient process.
Ripple’s Line of Credit solves this problem for our customers by providing upfront access to capital for every market through one simple credit arrangement – simplifying access to financial solutions that accelerate business performance and scale.”
Ripple launched ODL in October of 2018. The technology is now live in five remittance corridors, moving funds between the US dollar, the euro, the Mexican peso, the Philippine peso, and the Australian dollar.
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