Ripple buys $46 million worth of XRP
Bitcoin shares a strong correlation with most cryptocurrency assets. However, this correlation has not yet helped the third-largest digital currency XRP. The digital asset despite much volatility in the extended crypto market has been moving within a strict range and has managed to return 22.23% year-to-date. While the investors wonder when the price of XRP will take off.
Ripple might be thinking of helping out the digital asset as it bought XRP for the first time. According to its Q3 2020 XRP Markets report, Ripple bought nearly $46 million worth of XRP in the third quarter. The report indicated that this step was taken to “support healthy markets” which could lean towards the dull price of the asset along with supporting the new product introduced by Ripple, Line of Credit.
This new service enabled on-demand liquidity [ODL] customers to buy XRP on credit from Ripple. The report added:
“This is a near-term product solution for the Line of Credit beta. Long-term, Ripple is building new ODL capabilities to dynamically source XRP liquidity from the open market, not just Ripple.”
The company already holds nearly half of the digital asset’s supply, with some to date being dumped by one of the founders of Ripple, Jed McCaleb.
Apart from purchasing XRP, Ripple’s Q3 sales were largely related to ODL services, as the company has been actively working to bridge cross-border payments through XRP and their solutions. As per the report, the company sold $35.84 million worth of XRP to its ODL customers in the past quarter on a net basis. This was an increase of $3.29 million compared to the previous quarter. Ripple maintained its stance on programmatic sales and did sell any XRP to cryptocurrency exchanges.