Patent Reveals Ripple’s ODL Can Be Used by Banks, Governments, and Corporations
Ripple Labs Inc.–the developer of the XRPL, on Jan 26, has received a patent for a “Network computing system implementing on-demand liquidity for cross-medium transaction services,” records from the U.S. Patent Office shows.
A Value Transfer System
It is more than a year after application.
The patent office says the inventors of the ODL are Warren Paul Anderson, Dadi Armannsson, Jesse Brauner, Gunnar Kristjansson, Conner McNamara, Yana Novikova, and David Opler.
Specifically, part of the patent’s abstract describes the system as providing a guaranteed exchange rate. It can also manage customer pools and slippage balances in digital wallets to “adjust digital currency transfer amounts to align them with the guaranteed exchange rate.”
ODL Useful for Banks, Governments, Corporations, and NGOs
On-Demand Liquidity (ODL) is Ripple Inc.’s creation that enables partnering bank or financial service providers to transfer funds cheaply and instantaneously across jurisdictions using the XRP coin.
The ODL is a tool built on top of the xCurrent messaging system that is open-source and is part of the RippleNet suite.
As of Feb 2021, over 400 banks are part of RippleNet.
However, according to the ODL patent now assigned to Ripple Labs Inc., the system can transmit anything of value beyond currencies.
The XRPL enables real-time gross settlement of other digital currencies, stocks, bonds, securities, and much more.
Accordingly, the service can be valuable not only for banks but large corporations, government entities, NGOs, and companies seeking to move value through Ripple’s network cheaply and instantaneously.
Partnering Crypto Exchanges
Allowing this is the network of Ripple’s partner exchanges. Some of them include Bitso, Coins.ph, and Bitstamp.
During the initial stage, queries for the best pricing are made. Once discovered, XRP acts as a bridge.
If the order is big, it can be broken down into smaller chunks for the best pricing before transmission to the end-user.
The SEC Lawsuit
Despite legal challenges that threaten to throw the role of XRP to disarray, ODL ended the year strongly as per Q4 2020 summary report.
Trading volumes rose 12X on a year-on-year basis, and Ripple has on-boarded 15 more customers despite the U.S. Securities and Exchange Commission (SEC) lawsuit.
As BTCManager reported, Coinbase was sued for helping Ripple raise billions by selling XRP.
