Over the years blockchain has turned out to be the most transformative technology of this generation. The remittance industry is one of the sectors that have been heavily disrupted by the onset of blockchain technology.
A March survey conducted by Business Insider Intelligence showed that that the primary applications of blockchain lie in the payments and remittance.
Multiple blockchain companies have been working with blockchain to benefit the remittance industry, but Ripple is by far the most sought after. With its On-Demand Liquidity (ODL) product, Ripple has been using its native currency XRP as a bridge between two different currencies, eliminating the need for any kind of pre-funding.
The blockchain company is on a mission to implement its ODL globally and has seen much success. As of late, the company’s Head of Global Banking Marjan Delatinne has just revealed that Brazil might soon be the next area of expansion for ODL.
In an interview on the ‘Future of Finance’ YouTube channel on June 8, Delatinne said that the company has been working on the development of a cross-border remittance system for Brazil.
She added that the firm was planning on expanding services to “exotic corridors”, naming Philippines and Brazil as markets “where you don’t necessarily want to keep liquidity and you want to really move funds when you need it.”
Ripple already has three Brazilian firms namely Santander, Bradesco, and Banco Rendimento, already implementing the company’s blockchain-based financial services network RippleNet for payments. She further explained how ODL would leverage XRP to facilitate seamless cross-border remittance.
The news comes days after Ripple’s CEO Brad Garlinghouse had a non-public meeting with the president of the Brazilian Central Bank to discuss the digitization of the banking system. The primary goal of the meeting was to clarify institutional issues and discuss possible cooperation possibilities.
A great year for ODL
ODL saw exceptional growth throughout the last quarter of 2019. The service handled 550% more value in Q4 of 2019 than it did in Q3. The network further tripled its transaction volume over Q1 2020, while the USD value transacted using ODL increased by more than 294%.
One of Ripple’s biggest clients is money transfer giant Moneygram. The company announced that it has been moving 10% of its total transaction volume between the United States and Mexico using Ripple’s ODL.
Adding to this, the Company has now revealed that it has processed $54 million worth of transactions from the US to Mexico in the first week of February.
Last month The Daily Chain reported that Ripple is also strengthening its roots in the Asian crypto market with SBI holdings, a major backer of the company, set to integrate Ripple’s settlement platform MoneyTap with ATMs run by various banks throughout Japan.