Bitso, a Mexican crypto platform and Ripple’s key partner has moved more than $3.3 billion between the US and Mexico in 2022 alone. It marks a threefold increase in the volume of funds processed compared to the previous year.
The growth is attributed to Bitso’s partnership with Ripple, which enables the platform to offer cross-border payment solutions to its customers, facilitating financial remittances with cryptocurrencies.
According to Bitso’s Vice President of Products and B2B, Santiago Alvarado, the company has increased the number of companies and institutions using its financial services by 73% in the past year.
Alvarado also noted the impact of cryptographic technology on improving financial services and people’s lives. Bitso is excited to continue working as a key ally to companies that seek to move their money more efficiently, in the shortest time, and at the lowest cost.
Aaron Sears, Ripple’s Managing Director for the Americas, stated that Ripple is committed to solving its customers’ real problems through crypto and blockchain technology.
Sears believes that the strategic alliance with Bitso will enable Ripple to continue offering unprecedented cross-border payments in Mexico, an essential region for its customers.
Ripple aims to bring means of payment to companies in Latin America and offer cross-border cryptocurrency payments to more businesses in the region.
Bitso’s international transfers are mostly done with stablecoins or cryptocurrencies like XRP, which serve as a bridge between two currencies to facilitate faster and more affordable international transactions.
With the strategic alliance between Bitso and Ripple, the offer of transfers with the US is expected to be extended to more countries in Latin America soon.
However, the growth of Bitso’s operations highlights the increasing adoption of cryptocurrency as a cross-border solution due to its speed and low costs.
Ripple’s Liquidity Hub For Crypto Businesses
In a recent blog post, Ripple pointed out the difficulties that crypto businesses encounter when expanding. As these firms grow and extend their reach, they often have to handle numerous liquidity platforms, which can be both complex and time-consuming.
The complexity of managing these multiple liquidity venues can increase the operational costs of a business, making it harder for them to maintain growth.
However, leveraging cryptocurrency for business operations can be beneficial, and many companies are increasingly using it to diversify their asset balance sheets and reduce merchant settlement times. Accepting crypto as payment can also help businesses generate additional revenue by attracting new customers.
Given the variety of alternatives available, selecting the best liquidity provider might be difficult. The process can be complex and overwhelming, with different requirements and varying stages of maturity and sophistication. Poor management of capital and risk requirements can lead to high operational costs and challenges.
To help solve these problems, Ripple has introduced Liquidity Hub. This product uses smart order routing to source digital assets at optimized prices from various venues, including market makers, exchanges, and OTC desks. It simplifies crypto liquidity management for businesses, making it more efficient and cost-effective.
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