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Redeeming a Overdrive library loan on your Kobo gets the book from Kobo's servers.
You will notice that if you look at your books on Kobo's website, the library loan will show in My Books. You will also rarely find the book in the library and the book in Kobo's Store are not the same edition (most commonly, the ISBNs are different) so you can not fulfill the book from Kobo and need to go the .ascm route. If you look at the book in your Kobo's /.kobo/kepub directory, the file will have the GUID looking filename with no extension that Kobo uses for synced books.
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