Ripple has announced the launch of RippleNet’s On-Demand Liquidity (ODL) with Travelex Bank in Brazil. The deal between the two firms will allow for the utilization of XRP for ODL purposes for the first time in Latin America.
According to the announcement, the ODL solution with XRP will allow Brazilians to send money anywhere with low transaction fees and ‘without the need to hold pre-funded capital in the destination market.’
“Brazil is a key market for Ripple given its importance as an anchor to business in Latin America, its openness to crypto and country-wide initiatives that promote fintech innovation. As a result, the market is experiencing an explosion of activity as institutions look to adopt crypto and blockchain technology to solve customer pain points,” said Brad Garlinghouse, CEO of Ripple.
Travelex also noted that it wanted a better customer experience for its partners, who have little to no capital to cover the costs of pre-funding, which stunted the bank’s growth even as a central bank licensed bank but with the use of ODL, it will now process payments faster.
A strategic move to bolster XRP?
Since the news broke out, the crypto community questioned the impact this will have on XRP, which is still neck-deep in legal trouble with the U.S. Securities Exchange Commission.
However, this does seem like a move to help the XRP’s cause, and its potential cannot be undermined. João Manuel Campanelli, Chief Business Development Officer of the Travelex Group, says the partnership is only to bring crypto to the region in a ‘safe and compliant way.’
“More than $780 billion payments are sent into Brazil annually, making it an opportune market for both Ripple and its customers who will benefit from the capabilities of cryptocurrency to enable cheaper and faster cross-border payments”, noted Ripple in its announcement
Brazil is also very active in cryptocurrencies; it has a legislative framework for regulation, and adoption keeps growing.
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