Ripple, a provider of enterprise blockchain solutions for payments, announced on Thursday the launched Line of Credit, a new beta service on RippleNet that allows customers using On-Demand Liquidity (ODL) to source capital on-demand to initiate cross-border payments at scale using the digital asset XRP.
According to Ripple, Line of Credit offers upfront access to capital for every market through one simple credit arrangement, simplifying access to financial solutions that accelerate business performance and scale.
“Line of Credit has already been piloted by RippleNet customers, who specialize in cross-border money transfers, are experiencing the benefits firsthand, helping these companies grow their business and make global transfers more affordable, for more people. It also opens up opportunities to use the capital freed from pre-funded accounts and further invest in their business to enter new markets and reach new customers. “
Ripple further revealed that Line of Credit is the latest step in its vision to enable the Internet of Value and break down the barriers in finance. The exclusive new service is what financial institutions and money service providers may use to consistently provide customers with cost-effective, real-time cross-border payments. Ripple added:
“Line of Credit is only for use by eligible institutional RippleNet customers, not [consumers / general public / retail customers ]. Availability varies by jurisdiction and is subject to change. The Line of Credit is treated as a form of payment to finance a purchase of XRP, and is not a lease or loan of XRP for tax purposes.”