To send payments that source liquidity through On-Demand Liquidity (ODL), you can integrate your existing payment systems through RippleNet. RippleNet allows financial institutions to process and send payments through multiple peer liquidity connections. With On-Demand Liquidity, RippleNet can use the liquidity On-Demand Liquidity provides (with XRP as the bridge currency to exchange one fiat currency for another) to deliver funds to beneficiaries. Institutions can create a direct liquidity relationship to On-Demand Liquidity. With RippleNet's multi-hop payment capabilities, it's also possible to send payments through RippleNet where the funds are ultimately delivered through On-Demand Liquidity without a direct liquidity relationship.
This topic describes the onboarding process for using RippleNet with On-Demand Liquidity digital asset exchange partners.
Ripple recommends completing the following steps to integrate RippleNet with your existing systems.
- Set up a business relationship with the peers who will receive or process your payments. For more information about forming these relationships, see Business Integration .
- Install and configure RippleNet. You need to create peer connections with On-Demand Liquidity or another RippleNet peer who is connected to On-Demand Liquidity.
In RippleNet, create liquidity relationships with On-Demand Liquidity or another RippleNet peer who has a liquidity relationship with On-Demand Liquidity. You do not need to create a direct liquidity relationship to send payments through On-Demand Liquidity from RippleNet.
You do not need to hold or transact in XRP to send payments through On-Demand Liquidity.
- Familiarize yourself with the payment flow by sending test payments with the API.
- Write integration logic to translate the payment messages generated by your existing systems into RippleNet API requests. For more information, see the RippleNet API Reference and the Process Payments Tutorials.
To send payments through RippleNet, financial institutions first establish business relationships with peers. Such relationships typically include opening nostro/vostro accounts or digital asset exchange (DAE) accounts.
The details of this process vary between jurisdictions and peers. Contact your Ripple representative for more information and guidance.
Payment senders use the RESTful API operations exposed by RippleNet to send messages to payment partners (typically banks or other payment providers) on RippleNet. Payment senders write integration logic to translate payment messages from their internal systems into RippleNet API requests.
To use RippleNet Server, you should configure the application for your business use case. You will access hosted endpoints for test, user acceptance testing and production RippleNet environments that Ripple configures for you.
Ripple provides On-Demand Liquidity as a hosted service. Ripple sets up sandbox (
test) and production (
prod) instances of On-Demand Liquidity for you. You work with Ripple integration engineering to set up network peer connections between those instances and RippleNet.
ODL Test Mode with auto-responder
Ripple provides an On-Demand Liquidity ODL Test Mode (
test) environment, providing live market data to test your business integration with On-Demand Liquidity. The digital asset exchanges on this environment auto-lock quotes you accept and simulate completed payments to facilitate testing of your implementation. Reach out to your Ripple integration engineer to get ODL Test Mode set up.
When integrating with On-Demand Liquidity, use the following On-Demand Liquidity environments with RippleNet environments for your testing and development:
|RippleNet environment||On-Demand Liquidity environment||Partners||Currency|
When sending a payment through On-Demand Liquidity to another RippleNet partner for payment to a beneficiary, you should include
uat testing for your integration. For payments where an exchange pays the beneficiary through a payout outlet, you do not need to test your implementation on the RippleNet
Before releasing your integration for production use, you should make some small test payments through the On-Demand Liquidity/RippleNet
prod environments, to ensure your integration works with all live exchanges and partners in your payment flow.
Ripple configures the following settings on the sandbox (
test) and production (
prod) On-Demand Liquidity instances based on the information you provide and the credentials that Ripple supplies your institution.
— These credentials allow:
- Your internal systems to make requests to RippleNet's APIs.
- Your RippleNet instance to communicate with to your payment partner’s On-Demand Liquidity instance.
RippleNet uses OAuth 2.0 for authentication.
- RippleNet address — The unique address of a RippleNet user or member institution. You define this for your RippleNet instance. Ripple integration engineers provide you the RippleNet address for your On-Demand Liquidity instance. You use this address to request quotes. For more information, see the RippleNet API Reference and RippleNet addressing scheme .
- RippleNet public key — Cryptographic keys that RippleNet nodes use to authenticate requests. Ripple provides a tool to generate the key for your RippleNet and provides the public key your On-Demand Liquidity instance uses.
- Domain name - Ripple will supply the domain name of the On-Demand Liquidity instance. This domain name is the base URL you use to make peer network connections to RippleNet.
- Originating currency — This is the currency in which you fund this account.
- Destination currency - This is the currency in which beneficiaries receive payments.
To complete the RippleNet and On-Demand Liquidity configuration, you need to provide certain information as requested by Ripple Customer & Partner Engineers. Ripple uses this information to configure your On-Demand Liquidity instance. When the On-Demand Liquidity instance is ready, Ripple provides you with instructions for connecting to the instance. The instructions include the credentials you need to authenticate to the API and the domain names of the production and sandbox servers.
As with any sensitive credentials, securely store the API credentials Ripple provides. If compromised, a malicious actor could use the credentials to initiate and submit payment instructions.
To use On-Demand Liquidity, you need to perform the following setup steps directly with the digital asset exchange(s) you plan to use:
- Pre-fund your source exchange account
- Generate exchange API keys
- Upload your exchange credentials to On-Demand Liquidity using the RippleNet Home
For detailed instructions, see Connecting to digital asset exchanges.