Ripple has undoubtedly been making headway in terms of global expansion and making partnerships. The payment protocol has been rolling out several platforms to boost its presence in the crypto-verse while benefitting the community. In more recent updates, Ripple announced the launch of its latest venture.
Loans In XRP
Giving a twist to the traditional process of garnering loans from the banks, Ripple seemed to be influenced by the DeFi space. Recently, Ripple announced the launch of the “Line of Credit” platform that was solely built to providing loans in XRP. The platform is reportedly still functioning on its beta version and is said to deliver loans to specifically its On-Demand Liquidity [ODL] customers.
Over the past few months, Ripple has been a great advocate of the world steering towards digitalization. However, in its latest blog post, the platform highlighted how the “limited access to working capital” has been a major hurdle that hinders the growth of a company. Through the Line of Credit, users of Ripple’s ODL platform would be able to purchase XRP on credit. Users that have borrowed XRP from Ripple would be charged “one fee”. While the exact fee is unclear, the platform suggested that it was lesser than other credit options that are available in the market.
Elaborating on its latest platform Ripple wrote,
“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’s ODL platform has been lauded by many, however, it seems to be enduring a downfall lately as the liquidity of the ODL platform across several corridors has been faring low. Ripple’s ODL market has ventured into Australia, the Philippines as well as Mexico and intends to enter the European region, Africa, Latin America, Middle-East as well as the Asia Pacific.