Ripple launches XRP-based line of credit for businesses

Ripple has launched a Line of Credit for business lending. The beta version of the service runs on the RippleNet network and is available to a limited set of clients, according to a press release.

The product is aimed at fintechs, small and medium-sized enterprises. Ripple argues that this segment is more likely than others to face barriers to capital.

The loan will be issued in XRP tokens and only to institutional clients within the On-Demand Liquidity framework. If necessary, recipients will be able to convert the funds into fiat.

The company added that a fee would be charged on the credit amount. After testing the product, the team plans to deliver a more fully fledged offering.

As noted, Ripple may change its US jurisdiction to a more friendly one due to excessive regulation of the crypto industry.

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