On-Demand Liquidity (ODL)
Plain definition. On-Demand Liquidity is a Ripple payment service that institutions reach through the RippleNet API to send payments, delivering them through local rails such as SPEI.
Technical definition. Institutions send payments through On-Demand Liquidity by integrating with the RippleNet API, and the service delivers outbound payments through local rails such as SPEI. It relies on accounts the institution funds at digital asset exchanges, which Ripple engineers peer to the institution’s accounts to create liquidity relationships. Before payments start, Ripple funds the Sending Institution’s XRP wallet with a predetermined amount of XRP under a Commit to Sell Agreement. Each payment then passes through quoting, settlement execution and status confirmation. On-Demand Liquidity returns an FX rate that factors in all negotiated incentives and fees, quotes expire in 70 minutes, and an accepted quote is locked in a LOCKED state before execution moves the payment to EXECUTING.
On this site
On this site, On-Demand Liquidity (ODL) comes up in Is Ripple abandoning XRP?, What would happen to XRP and the XRP Ledger if Ripple failed?, What is XRP actually used for?, How does Ripple’s On-Demand Liquidity (ODL) use XRP? and Is most XRP activity speculation rather than real use?.
Source
Using On-Demand Liquidity (docs.ripple.com), read October 1, 2026.
Pages that cover On-Demand Liquidity (ODL)
- What would give XRP a real competitive moat, and what stands in its way?
- Is Ripple abandoning XRP?
- What would happen to XRP and the XRP Ledger if Ripple failed?
- What does the evidence say about how much XRP liquidity a share of global payments would need?
- Do banks and businesses need to hold XRP for it to be used?
- How much of Ripple's payment volume actually uses XRP?
- How does Ripple's On-Demand Liquidity (ODL) use XRP?
- Is using XRP for cross-border payments actually cheaper?
- Is most XRP activity speculation rather than real use?
- How does a bank go from an ODL pilot to full volume?
- Is XRP used for payments outside Ripple's own products?
- Which parts of the XRP institutional stack are live today, and which are still waiting?
- Can an RLUSD payment route through XRP automatically?
- How does Ripple's payment system decide whether to route a payment through XRP?
- How does SBI use XRP for Japan remittances?
- Is the cross-border prefunding problem real, or Ripple marketing?
- Is XRP payment routing live, and has it proven it can win routes?
- What did MoneyGram's use of XRP prove, and was ODL volume organic?
- How far did Ripple's ODL expand around the world?
- Which exchanges provide XRP liquidity for Ripple's ODL?
- What is XRP actually used for?