- Ripple has bought close to $46 million of XRP in Q3 of 2020.
- Ripple had previously said it was in the business of purchasing XRP.
- Ripple claimed the purchase was designed to support healthy markets.
Ripple, the company that focuses on the cryptocurrency XRP, bought just under $50 million worth of it during Q3 of this year, it announced yesterday. That’s despite owning a huge supply—nearly half of the entire XRP supply—in its own escrow accounts, to be sold to other companies.
“As an XRP holder, Ripple believes proactive communication and transparency are part of being a responsible stakeholder,” Ripple said in the market report.
The purchase is not a surprise given the company’s behavior earlier this year. Ripple indicated in its Q2 2020 XRP Markets Report that it was in the business of purchasing XRP.
Ripple’s decision to purchase XRP cryptocurrency has been taken to “support healthy markets,” and in the near term, acts as a product solution for the Line of Credit beta.
Ripple’s Line of Credit is a new beta service on RippleNet. It allows customers to use on-demand liquidity (ODL) to source capital on demand. This solution provides customers with the opportunity to purchase XRP from Ripple directly on credit, which provides capital upfront. Ripple suggests this can “help accelerate their business performance and scale.”
In the long term, Ripple is building these ODL capabilities to source XRP liquidity “from the open market, not just Ripple.”
In Q3, Ripple’s focus on OLD-related sales becomes very clear by the numbers. According to a sales summary table provided by the company, Ripple made $81 million in ODL sales, a major increase from the $32 million made in the previous quarter.