Ripple debuts an XRP-backed lending service for its ODL customers

  • Ripple has launched a new lending service based on XRP.
  • The company intends to finance its ODL-customer businesses to boost their operations.

The blockchain payment company behind the XRP cryptocurrency has ventured into the lending business with a new initiative dubbed Line of Credit. Based on its native cryptocurrency, the latest move from the blockchain company is reportedly aimed at funding small businesses without enough capital in order to enable them to scale up their operations. 

Ripple XRP lending

According to the announcement on Friday, the company’s lending service is only available for the customers of its On-Demand Liquidity (ODL) service. The company ODL uses the XRP cryptocurrency as the bridge currency, enabling the verse users to make faster cross-border transactions without having to pre-fund the destination accounts.

Through the lending service, the Ripple ODL customers are able to purchase the underlying digital currency on credit, with a one-time fee. Basically, the payment company is looking to support low-cost funding of fintech and small-to-medium enterprises for cross-border payments. According to the company, the lending service will help the customer businesses to scale businesses to compete with bigger institutions.

SMEs financing

The launch of Line of Credit is Ripple’s first-ever move in offering lending service, according to a spokesperson for the blockchain company. The new service is currently in Beta per the report. However, it has already been tested by the customers of RippleNet, the cross-border payment network of the company. 

The development today is part of the payment company’s effort to ensure that certain barriers in finance are lowered, while also enabling an Internet of Value. In recent days, the company has rearranged most of its services, platforms, including its executives. Cryptopolitan reported on October 6, the company rebranded its Xpring platform to RippleX and made key changes to the heads of its cross-border payment platform. 

Most recently, the co-founder revealed that the company might migrate its headquarters to either Asia or Europe.