HAL1000 Posted August 15, 2021 Share Posted August 15, 2021 Not sure if this is old news or new - but it's still in beta - so FYI :- https://ripple.com/line-of-credit/ Send Now, Pay Later With a Line of Credit Freeing up capital for your customers’ cross-border transactions can be inefficient. At the same time, creating credit arrangements for each destination market is time-consuming. With a line of credit from Ripple, your financial institution can use XRP to complete instant, low-cost cross-border transfers. We allow you to lock in a rate at the time of the payment, then repay us when it’s convenient for you, for a small fee. Only for use by eligible institutional RippleNet customers, not consumers / general public / retail customers. Availability varies by jurisdiction and is subject to change. Duke67 1 Link to comment Share on other sites More sharing options...
Guest Posted August 16, 2021 Share Posted August 16, 2021 17 hours ago, HAL1000 said: Not sure if this is old news or new - but it's still in beta - so FYI :- https://ripple.com/line-of-credit/ Send Now, Pay Later With a Line of Credit Freeing up capital for your customers’ cross-border transactions can be inefficient. At the same time, creating credit arrangements for each destination market is time-consuming. With a line of credit from Ripple, your financial institution can use XRP to complete instant, low-cost cross-border transfers. We allow you to lock in a rate at the time of the payment, then repay us when it’s convenient for you, for a small fee. Only for use by eligible institutional RippleNet customers, not consumers / general public / retail customers. Availability varies by jurisdiction and is subject to change. This product was released sometime last year. When you see XRP “sales” in Ripple’s quarterly reports (say $150M in 2021 Q2), they include Line of Credit sales. They are essentially loans and Ripple gets back their XRP eventually. Of course the SEC continues to claim Ripple makes $150M in revenue every quarter (Its latest emergency motion to get additional Slack messages from Ripple mentions this). Ripple would only make whatever’s the interest rate and I’m pretty sure the interest rate is discounted to almost 100% for now, given that Ripple is still in the “prime the pump” stage of ODL. Every other payment network like Visa, MasterCard etc pays what they call “network development fees” to merchants, but when it came to Ripple, the SEC claimed that it was “profiting by dumping XRP”. Ripple maintains that since XRP was treated as a currency/commodity by FinCEN and DoJ, they were simply using XRP like they would use gold. They also made it clear that the sales are bound by contracts that prevent dumping. I could be wrong, but my guess has been that Line of Credit is a way for Ripple to avoid the stigma of network development fees while achieving similar goals. They are only loaning the tokens for a period of time under the same strict conditions but there is a guarantee that the tokens return to Ripple, so there is no sale. Link to comment Share on other sites More sharing options...
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