Top payment protocol and exchange network Ripple has announced the launch of its lending product – “Line of Credit.” This product would provide clients access to capital on demand and perform cross-border payments using XRP.
Ripple made the announcement via an official blog post, noting that the new offering, which is still in beta, would allow customers using On-Demand Liquidity (ODL) to source capital/loans in XRP.
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
According to Ripple, the new initiative is focused on lending small to medium businesses the capital they need to grow. The company notes that a lack of access to capital was a major barrier to growth for many firms, unlike their huge counterparts with large balance sheets.
Ripple states, “Ripple’s Line of Credit solves this problem for our customers by providing upfront access to capital for every market through providing access to financial solutions that accelerate business performance and scale.”
Now clients using ODL on RippleNet can get XRP loans from the leading payment protocol. Clients are charged a single fee on the amount borrowed, and the loan comes with no hidden fees and boasts approval times faster than those offered by traditional lending services.
Ripple’s Line of Credit in-line with firm’s goal
The top payment protocol and exchange network stated that the new initiative is in-line with the firm’s vision. This vision is focused on enabling the Internet of Value and breaking down the barriers in finance.
According to Ripple, the Line of Credit initiative has already been piloted by RippleNet customers. The initiative also creates opportunities for small businesses to get loans freed from pre-funded accounts. In addition, the Line of Credit program helps people to invest in their businesses, allowing them to enter new markets and reach new customers.
The firm also noted that Line of Credit is only for use by eligible institutional RippleNet customers. The program is not for use by consumers, the general public, or retail customers.
It’s worth noting that Ripple has several big firms amongst its ODL customers. Such customers include MoneyGram, Viamericas, FlashFX, and many others.
Ripple considering leaving the U.S.
Due to the regulatory stance of the U.S. government towards the crypto industry, Chris Larsen, Ripple co-founder and executive chairman, has noted that the firm might move out of the country.
According to him, the “hostile stance” by the United States towards crypto firms would force many digital currency organizations to leave the U.S. and search for other locations with more crypto-friendly regulations.
Ripple currently has over 500 employees and nine offices worldwide. At press time, XRP was trading at $0.241863, with a market cap of $10,952,338,330 and a 24-hour trading volume of $1,007,691,473.
Find out more about Ripple and its current activities in the crypto space on the Altcoin Buzz YouTube channel.