Ripple has patented a network computing system for its XRP-powered cross-border payment product, On-Demand Liquidity (ODL).
The United States Patent and Trademark Office (USPTO) officially granted the patent on January 26th, according to documents filed on the USPTO website.
Ripple’s patent explains that ODL helps banks avoid keeping money tied up in the “correspondent banking” method of processing remittances.
“Current estimates indicate that on the order of ten trillion U.S. dollars in value is used as parked float sitting in nostro or other correspondent accounts throughout the world. Furthermore, any pair of banks that do not have an agreement regarding such exchanges must use other banks that do, which can drive up transaction fees and complexity…
With the advent of digital currencies and decentralized ledgers, the use of nostro accounts may be largely eliminated, releasing the parked money therein to be deployed by the banking institutions accordingly, as described herein. A computing system is provided herein that implements