Ripple Enters Credit Lending with XRP ‘Line of Credit’
Ripple, a payments startup with a multibillion-dollar valuation and the biggest XRP holder, has announced a new service named “Line of Credit” that allows financial institutions on RippleNet to use XRP to make fast and low-cost cross-border payments for their customer, and pay Ripple later.
Speaking to CoinDesk, a company spokesperson said:
"This is our first time testing a product offering in the lending space. We may decide to build out a more robust offering in the future."
The credit line will reportedly allow small-to-medium enterprises to expand their business where they would otherwise face “stalled growth,” stopping them from competing with larger firms. Companies using On-Demand Liquidity (ODL) on its network of payment providers, RippleNet, will be able to buy XRP from Ripple on credit and will be charged a fee on the amount borrowed.
The service may not be available in all jurisdictions.
