Ripple and Travelex collaborate to introduce XRP-enabled enterprise payment service in Brazil
In collaboration with licenced Latin American bank Travelex Bank, Ripple has introduced a payment option based on digital assets in Brazil. The launch of RippleNet's On-Demand Liquidity (ODL) with forex firm Travelex will lead to support quick and affordable cross-border transactions in Brazil using Ripple’s XRP token.
On August 18, the digital payment platform Ripple announced that?RippleNet's On-Demand Liquidity (ODL) will be used by the foreign exchange company Travelex. The enterprise-focused service aims to give clients in the area access to low-cost international paymentsa with quick settlement. These cross-border payments initially will be made possible between Brazil and Mexico through Travelex. Businesses and corporations can transmit money across borders using Ripple's XRP and the ODL platform. They don’t have to first open the accounts and maintain pre-funded in those countries.
The Central Bank of Brazil regulates Travelex Bank, which only conducts foreign exchange business. Travelex and Ripple may experience greater demand for its ODL service given that Brazil receives over $780 billion in remittances each year, with the local XRP contributing to less expensive and quicker payment settlement. Additionally, it broadens Ripple's connections with established companies in Europe, the Middle East, and Southeast Asia. As payments expand to include services like bulk SME payments and internal treasury, Travelex will next strive to cover other routes.
The news was released when the Brazilian government enacted their first "Bitcoin law" in April 2022, which aimed to establish a framework for the regulation of cryptocurrencies. Along with several other significant agreements in the Latin American region that have already used RippleNet services, including with Banco Rendimento, Frente Corretora, Banco Topazio, and Remessa Online, Ripple now has a relationship with Travelex.
Supporting the achievement in response, Ripple CEO Brad Garlinghouse stated that due to its generally crypto-friendly environment and potential for fintech innovation Brazil has emerged as one of the region's most significant destinations for cryptocurrency. As a result of institutional customers' growing use of blockchain technology and cryptocurrencies, the nation is currently experiencing an "explosion of activity." He continued by saying that the relationship with Travelex Bank is encouraging and that cryptocurrency is aiding individuals in resolving payment-related problems.
CBW - External Analyst