Ripple buys back XRP for the first time to support 'healthy markets'

Ripple for the first time bought $46 million worth of XRP in the third quarter of 2020, despite already owning nearly half of the digital asset's supply.

Ripple said the purchase was made to support "healthy markets," possibly referring to creating interest around XRP and thereby raising its price.

A Ripple spokesperson told The Block that the company may continue to purchase XRP to also support its newly launched product — Line of Credit beta — which allows On-Demand Liquidity (ODL) customers to buy XRP on credit from Ripple. The ODL solution leverages XRP for fund transfers. 

"Long-term, Ripple is building new ODL capabilities to dynamically source XRP liquidity from the open market, not just Ripple," said the spokesperson.

Ripple's Q3 sales were also related to its ODL solution. "ODL-related sales include XRP sales to support ODL (including Line of Credit) and key infrastructure," said the spokesperson.

Ripple sold $35.84 million worth of XRP to ODL customers in Q3 on a net basis, compared to $32.55 million worth of XRP to direct institutions in Q2. There were no programmatic sales, i.e., XRP sales to cryptocurrency exchanges, in Q3.
In other news, Ripple has also opened a new regional headquarters office in Dubai International Financial Centre, which has its own independent judicial system and regulatory framework.

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Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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