- Summary:
- Ripple has partnered with Travelex Bank, which will see the bank use Ripple’s ODL. We tell you what informed the decision.
Ripple, the blockchain and cryptocurrency solutions provider has announced the introduction of its RippleNet On-Demand Liquidity (ODL) in Brazil. In this case, the partner is Travelex Bank, which uses ODL and is licensed by Brazil’s Central Bank to trade exclusively in foreign exchange. By exchanging XRP tokens for fiat currency, Ripple’s ODL solution enables fast, cheap, and borderless international money transfers without requiring recipients to keep any funds in escrow.
What Ripple’s ODL brings to Travelex
Ripple established a local presence in Brazil in 2019 and intends to keep growing its workforce there across policy, business development, and engineering. With locations in over 20 countries, Travelex is among the largest foreign exchange expert in the world.
The use of cryptocurrencies is expanding at a rapid rate across Latin America as a direct result of the rising level of interest shown by retail users, as well as investments made by institutions. While some countries have been slow to regulate the cryptocurrency market, Brazil has been moving forward with legislation to establish a framework that would safeguard consumers and encourage innovation.
Brazil is a prime market for Ripple because of the enormous amount of money transferred into the country each year. This amounts to more than $780 billion. Therefore, this presents an enormous potential of crypto platforms to facilitate cheaper and faster cross-border payments. Travelex’s partners will benefit from faster settlement and continuous access to liquidity thanks to ODL’s implementation.
Due to its significant role in Latin American trade, its welcoming attitude toward cryptocurrencies, and its government’s efforts to foster fintech innovation, Brazil is a crucial market for Ripple. Travelex will initially allow for transactions between Mexico and Brazil, with the intention of expanding to other corridors and use cases in the future. These include payments made through the corporate treasury as well as bulk payments made to small and medium-sized businesses (SME).