International payments firm Ripple has added lending to its RippleNet tool suite, which leverages the XRP token to source capital and initiate cross-border payments.
According to an Oct. 8 announcement, the new tool attempts to tackle the limited access to working capital which stunts the growth of many businesses. This new system—dubbed “Line of Credit”—has already been tested by the RippleNet customers who specialize in cross-border money transfers.
The loans will be available to customers using its On-Demand Liquidity (ODL) service. Those customers will be able to borrow XRP tokens directly from Ripple and use them in whatever market they choose.
Ripple explains that many financial technology firms and small and medium enterprises do not have the capital and resources that are needed to grow in several markets—an issue the service is trying to solve. Right now, companies in such situations are forced to create credit arrangements for each partner in each destination market, and every arrangement adds overhead and management costs.
With the new tool added to RippleNet, firms can access upfront access to capital for every market through one simple credit arrangement—which simplifies access to worldwide financial institutions. Customers are charged one fee on the amount borrowed and can receive approvals that Ripple claims are faster than traditional means.
Ripple has been on a roll lately. As Modern Consensus recently reported, this Friday the judge dismissed nearly all of the claims brought in a class-action lawsuit against Ripple. The suit was brought on behalf of XRP investors alleged that the token was an unregistered security and that the company and its CEO, Brad Garlinghouse, had used unfair or fraudulent business practices, including false advertising.
Modern Consensus founder Ken Kurson sits on the board of Ripple.
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