Ripple and Travelex, a Latin American bank, announced new cooperation on August 18 to expand immediate cross-border crypto payments in Brazil through Ripple’s On-Demand Liquidity (ODL) solution.
Ripple’s ODL enables fast cross-border transactions at a minimal settlement cost. In addition, the ODL does not require pre-funded capital in the destination market. Travelex became the first Latin American bank to use Ripple’s ODL solution as a result of the agreement.
Ripple envisions providing utility
Ripple’s CEO, Brad Garlinghouse, stated that the company’s purpose from the start was to provide actual value and utility. He stated:
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. We are excited to collaborate with an innovative partner like Travelex Bank to help move money more efficiently for the benefit of its customers across Brazil.
Travelex Bank is the region’s first foreign exchange bank, and it operates purely digitally. The bank stated that it has been searching for methods to improve the customer experience for its consumers, the majority of whom have the minimum income to spare for settlement charges.
Travelex will be able to provide immediate international transfers 24 hours a day, seven days a week by employing XRP’s ODL. At now, the feature will only handle payments between Brazil and Mexico, but it will progressively expand to cover more territories in the future.
The SWIFT network is generally used by banks when sending money across borders. Despite the fact that it functions properly, a lot of banks are not a part of the network, and the transaction involves a sizable amount of commission costs. Blockchain, on the other hand, can quickly fix this problem and make cross-border transactions as straightforward as paying for coffee at your local shop.
The same is being done by Ripple, and working with banks improves the process significantly. According to market estimates, the global remittance market might grow to $1.23 trillion in yearly revenue by 2030. And at that time, blockchain technology may easily take control of the majority of it.