- Ripple confirms it is working a the XRP-backed lending solutions
- A few months ago, Ripple secured $200 million in Series C funding
- XRP looks it wants to move lower after failing to stay above $0.2150
Fundamental analysis: Ripple confirms it is venturing into lending
The new solution will offer working capital loans to RippleNet clients and the company is now looking for a new boss of product management for the loan unit.
“We are expanding our offering to loans to further support our customers with their working capital needs – something that we know is a huge pain point for many of them,” said the Ripple representative.
The working capital loans that Ripple plans to provide to its customers are commonly requested by SMEs to fund their daily business activities.
The new loan offering will operate in connection with Ripple’s on-demand liquidity payment system (ODL), which utilizes the XRP token.
Despite the fact that the lending product is still in its initial stages, RippleNet customers have already provided positive feedback,said the technology company.
“The offering is still in its early stages, but we have received positive feedback from several customers. Global payments remain at the heart of our business, and we are excited to find new ways to serve our existing and prospective RippleNet customers,” Ripple spokesperson added.
However, given that the company will use XRP on a cross-border basis loan purposes, it will face some regulatory obstacles. Still, it’s early to say what will happen and Ripple might be able to address those legal barriers.
Since it’s still in the early stages, precise details of the solution remain unknown. The company says it’s looking to hire someone who will bring its new solution to market “from concept to launch”. The new loan division director should be someone who has “strong leadership skills” as they will be working together with internal teams and clients.
The company’s plan to hire a lending solution director comes a few months after it secured $200 million in Series C funding round.
Earlier this month, Invezz reported that Ripple revealed that it sold only $1.75 million in XRP coins in Q1, a decrease of 87% compared to the last year.
Technical analysis: XRP attempting to break lower
Ripple is struggling to stay above $0.20 after breaking below $0.2150 a few days ago. The third largest digital coin by market capitalization left the ascending wedge and pushed lower to print a new 1-month low near $0.1750.
The price action is now trading below the key confluence of technical indicators that is extremely important in the short-term. A break above $0.22 would open the door for a move higher, while the prolonged stay below this zone is likely to generate more selling pressure.
The support near $0.1750 is likely to create problems for the sellers while some traders may see this level as an opportunity to trade Ripple.
Ripple is struggling to trade above $0.20 after breaking below a key support zone around the $0.2150. In the meantime, the XRP parent company is working on XRP-backed lending solutions.