Ripple, one of the leading companies in the crypto money industry, is preparing to provide lending services with XRP to its users. The company will offer the On-Demand Liquidity (ODL) model with its own crypto currency XRP and the “Line of Credit” service.
San Francisco-based Ripple is starting to provide lending services to its users via their own digital currency XRP. According to Ripple’s statements, it has been suggested that the service prepared under the name of “Line of Credit” will help SMEs to expand their business and compete with larger companies. According to the statements made by the company spokesperson, more robust proposals may be created in the future based on the success of this project.
Users will be able to receive XRP with the lending service to be carried out over RippleNet, which is the company’s payment provider network, just like taking loans from commercial banks. Repayments will also be measured by this amount of XRP received. The company announced that the lending service is currently piloting with the participation of RippleNet users and has passed some beta tests at this stage.
“Cheaper and More Flexible to Pay”
The company’s managing director, Asheesh Birla, also expressed his reaction to Ripple’s ODL move on his Twitter account. Birla emphasized that RippleNet customers can use this XRP-based system wherever they are in the world, wherever they want, which is less costly and more flexible than the existing traditional financial order.
General Manager Birla stated that the “Line of Credit” application will allow businesses to scale and accelerate their performance and underlined that those who benefit from the pre-application have already reaped the fruits of this.
How is it going to be?
Ripple, which plans to facilitate cross-border transactions with the ODL model, plans to use XRP as a “bridge currency”. A user can pay by converting it to XRP to pay to a cross-border company without the hassle of converting money into foreign currency. Likewise, the other party can easily convert their money from XRP to any unit they want.
At the same time, this user does not have to deposit money immediately in order to pay via “Line of Credit”. According to the company’s statements; The user can make use of the lending application through this network, just like the loan withdrawn from banks, and can pay back to Ripple when appropriate.