Ripple has been working as a gateway for banks to be exposed to the cryptocurrency industry. Starting off as a small blockchain company, it has seen massive growth and currently has a reported 168 customers comprised of 118 banks, 16 remittance/money transfer firms, seven foreign exchange companies, two cryptocurrency exchanges, 11 payments providers, six software and technology firms, and eight others, including international auditing and professional services giant Deloitte.
The company behind the popular cryptocurrency XRP has also been leading the remittance market with its on-Demand Liquidity product (ODL). Previously known as xRapid, ODL has been leveraging the company’s native token XRP, to function as a bridge between two different currencies thus eliminating the need for any type of pre-funding.
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. In raw transactions, those services saw a 290% increase inactivity. In less than a year, over 24 financial companies signed on for ODL, including Viamericas, FlashFX, and Interbank Peru.
One of the biggest customers of Ripple is money transfer giant Moneygram. The company joined hands with Ripple back in June 2019. The company 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.
7.5% of total US-Mexico remittance flows through Ripple
In a new interview on CNN’s First Move, Ripple CEO Brad Garlinghouse made the announcement stating that the blockchain company has moved 7.5% of total transactions in-between the US and Mexico. Garlinghouse said:
“Last week, we did $54 million of XRP flows into Mexico. That’s 7.5% of all flows from the US dollar to Mexican peso. That’s up from 3% in December. So this is growing very quickly.”
“You have to focus on a real problem, a real customer and drive that utility. With 7.5% of liquidity into Mexico are being driven through XRP, you start to really see that it is not a science experiment,” he added.
Ripple has now become the only cryptocurrency company featured in a list of the top 100 cross-border payment providers by financial data provider FXC Intelligence.
This feat was achieved with the help of Mexico-based crypto exchange Bitso that partnered with Ripple to facilitate XRP settlements into the country and the exchange is now processing 10% of MoneyGram’s flows into Mexico using XRP. Bitso’s volumes derive from the activity of MoneyGram, which already uses XRP for 10% of its transfers.
Bitso CEO Daniel Vogel told crypto news platform The Block that the exchange is gaining traction in one of the world’s busiest remittance corridors with approximately $35 billion in the yearly transaction flow. Talking about XRP’s product, He said:
“You can move that money so quickly from the U.S. to Mexico,” he said. “It removes the huge costs of capital that some of these money transmitters hold. The solution is a lot better than the traditional financial system.”
On this matter, Bitso senior analyst Emilio Rivero Coello says that cryptocurrency can settle transactions in a matter of seconds while reducing fees by 2.83% to as much as 5.62%. Coello says:
“By leveraging the technology of a cryptocurrency exchange, Bitso is able to provide other financial institutions with on-demand liquidity for global payments. This allows transactions to be sent in less than 90 seconds, which is profoundly less time than the 3 to 5 days it takes using traditional methods.”