Ripple launches Line of Credit to fund instant cross-border payments

Ripple has 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.

Limited access to working capital is one of the biggest barriers to growth for many companies. Fintechs and small and medium-sized enterprises (SMEs) lack the capital and resources to compete with large banks. Faced with stalled growth, customers turn to creating bespoke credit arrangements - with each partner, in each destination market. Each arrangement requires additional overhead and management.

Ripple’s Line of Credit provides upfront access to capital for every market through one credit arrangement. Those using ODL on RippleNet can purchase XRP from Ripple on credit. According to the official press release, customers are charged one fee on the amount borrowed, with no hidden fees, and can receive approvals faster than through traditional means.

Line of Credit has already been piloted by RippleNet customers, who specialise in cross-border money transfers. Note: 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.