New blockchain credit facility launched by Ripple
A leading blockchain enterprise company has launched a new credit line that will benefit up and coming fintechs.
Ripple, which has 500 employees and nine offices worldwide, specialises in commercial products that are currently used by customers in more than 55 countries.
Line of Credit is a new beta service on RippleNet that enables customers using On-Demand Liquidity (ODL) to access 'capital on demand', and to facilitate cross-border payments via XRP – its native digital asset.
Ripple customers have access to 'alternative liquidity solutions' via the company’s worldwide network which uses the XRP Ledger and the XRP digital asset, to create seamless and speedy credit payment services globally.
Companies using on can buy XRP from Ripple on credit. They can then receive credit approvals faster than via traditional routes. Already piloted by RippleNet customers, the scheme has proven highly successful because it provides businesses with the opportunity to utilise capital freed from pre-funded sources. This enables them to reach customers in new markets.
The benefits are explained in a statement released by Ripple, which states, “Limited access to working capital is one of the biggest barriers to growth for many companies. Unlike incumbents who have large balance sheets that allow them to scale their business quickly, many fintechs and small and medium-sized enterprises (SMEs) lack the capital and resources to compete.
It continues, “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, making it a slow, burdensome and an ultimately inefficient process.”
The new Line of Credit service solves these challenges for customers because it enables immediate access to capital for all sectors via a one-step credit agreement. Line of Credit also operates through existing financial systems, which means businesses can improve their payment infrastructure, but do not need to replace it.
The statement concludes, “Line of Credit is the latest step in Ripple’s vision to enable the Internet of Value and break down the barriers in finance. It’s an exclusive new service that financial institutions and money service providers can use to consistently provide customers with cost-effective, real-time cross-border payments.”
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