Ripple launches 'Line of Credit' — to provide loans in XRP
October 9, 2020, 7:10AM EDT
1 min read
Ripple has finally launched its loan product, five months after the company first confirmed its plans to The Block in May.
Announcing the news on Thursday, Ripple said its new product "Line of Credit," which is currently in beta, would provide select customers working capital loans in XRP.
Specifically, Ripple customers who utilize its On-Demand Liquidity (ODL) solution would be eligible for the offering. “Those using ODL on RippleNet can purchase XRP from Ripple on credit,” said the company, adding that it would charge "one fee" on the amount borrowed.
Ripple did not disclose the fee, but said it is “a lot less than most other available credit options.” The offering is aimed at fintechs and small and medium-sized enterprises (SMEs).
Ripple currently has "more than two dozen" ODL customers, including money transfer firms MoneyGram, Viamericas, and FlashFX. The ODL solution currently supports Mexico, the Philippines, and Australian markets. Ripple once said that the support for Brazil is "coming soon," as well as additional corridors across Asia-Pacific (APAC), Europe, Middle-East and Africa (EMEA), and Latin America (LatAm) are in progress for this year.