Popular payment company Ripple has just announced the launch of Line of Credit, a new service that allows users of its On-Demand Liquidity (ODL) solution to borrow XRP.
Per the company's announcement, "this is our first time testing a product offering in the lending space. We may decide to build out a more robust offering in the future."
According to Ripple, the aim of this new service is to help small-to-medium enterprises expand their businesses so they can compete with larger companies.
In particular, companies using Ripple's ODL service will be able to purchase XRP on credit for a small fee. This will allow them to finance their cross-border transactions at a very low cost.
This new service has already been tested in a pilot project by RippleNet customers who specialize in cross-border money transfers. The product is the latest step in Ripple's vision of "breaking down the barriers in finance."
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