Ripple has announced the debut of On-Demand Liquidity (ODL) in Brazil with Travelex Bank.
The ODL solution with XRP will enable Brazilians to move money anywhere with cheap transaction costs and “without the need to keep pre-funded capital in the destination market,” according to the statement.
“Brazil is an important market for Ripple due to its position as a corporate hub in Latin America, its receptivity to cryptocurrencies, and its nation-wide measures to support fintech innovation. As a result, the sector is seeing a surge of activity as institutions seek to integrate crypto and blockchain technology to address client pain points,” according to Ripple CEO Brad Garlinghouse.
Travelex also remarked that it sought to improve the customer experience for its partners, who have little or no cash to meet the expenses of pre-funding, which limited the bank’s development even as a central bank licenced bank. However, with the usage of ODL, it would now process payments more quickly.
A tactical effort to strengthen XRP?
Since the news surfaced, the cryptocurrency world has questioned how this would affect XRP, which is currently involved in legal issues with the U.S. Securities and Exchange Commission.
However, this seems to be a move that will benefit the XRP, and its promise cannot be discounted. Chief Business Development Officer of the Travelex Group, Joo Manuel Campanelli, says the partnership’s only purpose is to deliver crypto to the area in a “safe and compliant manner.”
“More than $780 billion in payments are transferred into Brazil every year, making it an ideal market for Ripple and its clients, who will benefit from the potential of cryptocurrency to allow cheaper and quicker cross-border payments,” said Ripple in its release.