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 On Thursday, October 8, San Francisco-based blockchain venture Ripple Labs Inc announced its new credit line service. The service allows customers to access liquidity on demand and fund instant cross-border payments using the native XRP cryptocurrency. RippleNet customers using the On-Demand Liquidity (ODL) feature can request a credit line by purchasing XRP from Ripple on a credit basis. This helps businesses gain instant access to the capital they need to grow their business at scale. This service is mainly aimed at emerging financial technology companies and small and medium-sized enterprises. It helps expand business quickly while eliminating operators’ working capital shortage issues. This will also help them compete with big players in the market. This is Ripple’s first foray into cryptocurrency lending. The new loan service will help Ripple customers overcome the problem of creating customized credit facilities. Ripple’s official website explains: “Your financial institution can use XRP to complete instant, low-cost cross-border transfers as long as it has a line of credit from Ripple. We allow you to lock in an interest rate when you pay, then pay us back when it's convenient for you, for a small fee. ” With Ripple’s line of credit, customers can access funds in advance by taking advantage of the platform’s simple credit facilities. Thus, it ultimately helps businesses get financial solutions easily and quickly and allows them to scale as much as they want.  How Ripple Credit Line System Works Customers who are already using the On-Demand Liquidity (ODL) facility on RippleNet can purchase XRP from Ripple, where customers are instantly approved and only pay for what they borrow. Ripple guarantees that there will be no such hidden charges. “RippleNet customers can simply take advantage of a simple XRP-based arrangement wherever ODL is available, regardless of sending destination or fiat currency, and for fees that are significantly lower than most other available credit options,” the official announcement said. Ripple said that customers who specialize in cross-border business can directly experience the benefits of this system. Hence, the credit line will help businesses expand their business through affordable transfers across the globe. It also allows clients to withdraw funds from the reserve fund account and further invest it in business growth. Ripple said the line of credit helps businesses tap funds without increasing the cost and overhead of legacy systems. At the heart of this tool is Ripple’s distributed ledger technology (DLT) and its XRP token. The credit line is the latest move by Ripple to realize the Internet of Value and break down financial barriers. This is an exclusive new service that financial institutions and money service providers can use to continuously provide cost-effective, real-time cross-border payments to their customers. Remark: Credit limit, also known as "credit limit", refers to a certain amount of credit limit granted by a bank to its basic customers. That is, within a specified period of time, the enterprise can recycle this amount of money. For example, a company applies for a one-year export bill quota of US$2 million. If the company uses it five times, the usable amount is US$10 million (the procedure only needs to be completed once, and the other procedures are very simple). If it is used ten times, the usable amount is 20 million yuan. On the one hand, this solves the company's short-term capital turnover difficulties, improves the company's capital circulation speed, and also improves the company's capital use efficiency.  END  THE END The Blockchain Application Laboratory aims to report on the application and exploration of blockchain in the business field, and provide in-depth reports for companies and entrepreneurs who are quietly committed to the research and development of cutting-edge technologies. Interview and submission email: lee@ifintechnews.com Repost WeChat: auteea |
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