What is On-Demand Liquidity (ODL)?
Reviewed by AllAboutXRP Editorial on August 24, 2026
Quick Answer
On-Demand Liquidity (formerly xRapid) is Ripple's payment product that uses XRP as a bridge currency for cross-border transactions. It eliminates the need for pre-funded accounts in destination currencies, freeing up capital for financial institutions.
On-Demand Liquidity is Ripple payment functionality that uses XRP as a bridge asset between two currencies. Ripple now presents this capability within its broader payments products, so older product names and corridor lists may not describe the current offering.
Simplified flow
In a documented flow, funds reach a source exchange, are converted to XRP, move across the XRP Ledger, and are converted to the destination currency. Ripple's documentation states that the source exchange is prefunded and that the payments user does not need to hold or transact XRP directly. It is therefore inaccurate to say the system eliminates every form of prefunding.
Read the Ripple Payments ODL overview and ODL transaction flow for the provider's current description.
What the documentation does not prove
Technical use of XRP in a payment flow does not by itself prove a lasting increase in XRP price or investor demand. Volume, corridor availability, counterparties, fees, and regulatory eligibility require dated evidence. Compare the product with the World Bank's cross-border fast-payments report for broader payment-system context.