San Francisco-based tech company Ripple has initiated its first buyback of XRP in the third quarter of 2020, citing support for “healthy markets.”
According to a report, Ripple bought $46 million XRP in order to support its new Line of Credit product and support a healthy marketplace.
The report claims Ripple “may” continue to purchase XRP in the future as part of a long-term plan to build on-demand liquidity (ODL) capabilities using a dynamic source of XRP from the open market.
The Line of Credit service, which launched its beta last quarter, operates on RippleNet and allows ODL customers to source XRP capital on-demand. Clients are able to purchase XRP from Ripple via credit which provides a source of capital for accelerating and scaling their business.
The report claims initial feedback for the feature has been “overwhelmingly positive” and is opening businesses to new markets and customers.
The markets report also shows Ripple sold $35.84 million worth of XRP, net of purchases, to ODL customers during Q3 2020, up from $32.55 million in XRP sold to institutions the previous quarter. Ripple says it focused solely on its over-the-counter (OTC) sales and leases as part of providing increased XRP liquidity to RippleNet customers.