Ripple Launches New Cross-Border Payment Product
Ripple recently made a statement that it will leave the US unless the legislature takes action to improve the state’s regulatory framework. Ripple has launched a loan product called: Credit Line. The product is developed based on XRP. The product is currently being tested. This product enables users to use working capital loans for cross-border transactions using the XRP Ripple cryptocurrency .
The statement explains: Users using ODL on RippleNet will be able to purchase XRP from Ripple on credit.
Ripple suggested that the line of credit is not taxable, but used as a payment to acquire XRP. The innovation from Ripple is a solution aimed at helping companies with growth potential. But they lack capital to achieve the goal. Note that the new opportunity will give fintech companies, both small and medium-sized enterprises, opportunities and an advantage in confrontation with large, developed companies.
According to Ripple’s statement: Clients only pay a fee for the amount borrowed, with no hidden fees. In addition, it is argued that it takes less time to approve a loan.
However, it should be noted that the line of credit is only available to members of an authorized RippleNet . RippleNet is Ripple’s exclusive network. Built on top of XRPL as a payment and exchange network. And it is used as a payment solution system for banks and other financial institutions. Therefore, private users cannot use the product. In addition, access to the network will be limited geographically, depending on the regulations of different states.
The new product is the next step towards Ripple’s goal of developing Internet services and simplifying financial transactions. As a reminder, back in May this year, Ripple announced the development of a new service that will provide loans for working capital to RippleNet clients. As we can see, the company has kept its promise.
ODL service was launched in 2018. XRP-based liquidity network implemented in the markets of Australia, Mexico and the Philippines. Ripple has also announced plans for the near future to expand into Brazil, Asia Pacific, Europe, the Middle East and Africa.
But despite encouraging progress, XRP is struggling to gain momentum. To return to the top three by market value.