Ripple’s On-Demand Liquidity (ODL) and the Federal Reserve’s FedNow Service both address liquidity requirements for payment activity that operates around the clock. Crypto researcher SMQKE ha
Ripple’s On-Demand Liquidity (ODL) and the Federal Reserve’s FedNow Service both address liquidity requirements for payment activity that operates around the clock. Crypto researcher SMQKE has used documentation from Ripple and the Federal Reserve to compare the two systems, focusing on 24/7 liquidity management.
In a post on X, SMQKE wrote, “Yes, Ripple’s ODL uses XRP to deliver 24/7 liquidity management which matches exactly what FedNow requires of private sector instant payment services.” The researcher attached screenshots of documentation from both Ripple and the Federal Reserve to support the comparison.
Ripple’s documentation describes ODL as a liquidity management solution for RippleNet customers. The system allows customers to move funds across borders and currencies without pre-funding accounts in different markets. Ripple also says ODL reduces operational costs and frees working capital while supporting continuous cross-border settlement.
The documentation specifically identifies XRP as ODL’s bridge currency. According to the material, ODL sources liquidity on demand and uses XRP to facilitate real-time movement of funds.
Yes, Ripple's ODL uses XRP to deliver 24/7 liquidity management which matches exactly what FedNow requires of private sector instant payment services
This is documented below.
pic.twitter.com/MKBfufwUEJ
— SMQKE (@SMQKEDQG) September 18, 2026
The second image from SMQKE’s post comes from Federal Reserve documentation for the FedNow Service. The document discusses Liquidity Management Capabilities, or LMT, which support liquidity management for 24/7 instant payments.
The Federal Reserve document says FedNow enables fund transfers between master accounts, between a master account and a joint account, for private-sector instant payment services.
The document also explains that FedNow participants can authorize service providers to initiate liquidity transfers on their behalf. Correspondent institutions can also settle liquidity management transfers that participating FedNow institutions initiate.
Federal Reserve Banks will implement controls to ensure that participants use these liquidity management transfers only for instant payment liquidity needs.
SMQKE’s comparison centers on the fact that both documents discuss liquidity management in connection with payment systems that operate continuously. The researcher uses the documentation to link Ripple’s description of ODL to FedNow’s stated requirement for liquidity management in private-sector instant payment services.
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The post also received contrasting views in the comments. MEPH focused on the role of continuous liquidity infrastructure rather than XRP price targets. MEPH wrote, “Exactly—the durable thesis is 24/7 liquidity infrastructure, not a price slogan.”
MEPH also referenced XRPL 3.4.0 and its lending capabilities. The commenter said validator activation and measurable settlement and borrowing activity would demonstrate whether the network’s available capacity translates into adoption.
Jamie Williamson offered a different interpretation of the comparison. Williamson said FedNow’s Liquidity Management Transfers settle between Federal Reserve master accounts in central bank dollars. The commenter also said this process differs from ODL’s use of XRP to facilitate liquidity between mismatched foreign currencies.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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The post New Document: This XRP Utility Matches What FedNow Requires appeared first on Times Tabloid.
