Ripple CTO David Schwartz has clarified the company's prefunding strategy for XRP, explaining that customers can prefund in just one account and make payments to any On-Demand Liquidity (ODL) destination market. He also highlighted the flexibility of Ripple's system, stating that customers can hold their funds in their preferred asset and pay in a different one. Schwartz confirmed that Ripple can prefund accounts using their own XRP at very near zero cost, but the company does take on some credit risk and must charge for that accordingly. There is a non-zero risk that the customer will not pay the company back for the XRP, particularly if a customer's funds are held in a bank that fails or goes bankrupt for some reason.

(By Alex Dovbnya)