Cryptocurrency company Ripple may expand its international payments corridor network, on-demand liquidity (ODL) to Brazil, which could contribute to the adoption of long-term XRP. Ripple completed 28 new ODL contracts in Q1 of 2020.
15 June, 2020 | AtoZ Markets – The company’s ODL may soon be available in Brazil, according to Marjan Delatinne, Head of Global Banking at Ripple. He said, “We extend these services now to more and more corridors, typically exotic corridors with lots of challenges, like the Philippines and very soon within Brazil.”
New XRP-Based Payment Corridor in Brazil
The biggest attraction of Ripple’s ODL payment service is that it doesn’t require upfront funding like traditional banks. Ripple offers immediate liquidity in the target countries. It also makes cross-border transactions faster, cheaper and more convenient. Ripple also met with the Brazilian Central Bank in May.
Three Brazilian companies (Santander, Bradesco and Banco Rendiment) are currently using RippleNet, Ripple’s blockchain-based financial services network for payments. But Delatinne explained how ODL could be utilized with XRP tokens as a bridge between two fiat currencies for cross-border transactions.
ODL network utilization is rising Ripple’s ODL payment network has tripled volume in the Q1 of 2020, and US dollar transactions using ODL have increased by more than 294%. Ripple officials also said the company believes the COVID-19 pandemic is pushing the digitalization agenda. Asheesh Birla, Ripple’s Senior Vice President of Product Management and Corporate Development, said:
“Ripple is on track to open new ODL corridors this year. We’re onboarding new customers and working with existing customers to ramp up ODL volume in important corridors. It includes USD-MXN, USD-PHP, AUD-USD and PHP, and from EUR-USD.”
Ripple is reportedly making other moves to establish itself in Brazil. Central Bank Governor Robert Campos Neto had a video conference with Ripple CEO Brad Garlinghouse and three other representatives.
Think we missed something? Let us know in the comment section below.