Blockchain payment firm Ripple Labs has announced the launch of RippleNet’s On-Demand Liquidity (ODL) in Brazil via its partnership with Travelex.
The ODL solution from Ripple enables users to instantaneously transfer money across borders with very low-cost settlement and without the need to keep pre-funded capital in the destination market by employing XRP.
Although other Brazilian firms like Remessa Online, Banco Topazio, and Banco Rendimento already use the ODL. The partnership makes Travelex the first Latin American bank to utilize the ODL.
It’s also the first bank to be approved by the Central Bank of Brazil to exclusively operate in foreign exchange. Using RippleNet’s ODL solution, Travelex will efficiently process cross-border payments between enterprises using XRP.
Initially, Travelex will allow cross-border payment between Brazil and Mexico while it integrates other regions shortly.
The announcement follows the recent approval by the Brazilian government signing off on its first Bitcoin law in April 2022. This has thus set the stage for how cryptocurrency will be regulated in the region.
Interestingly, Brazil is also working on rolling out its own Central Bank Digital Currency (CBDC), the Real Digital. It has selected 9 CBDC projects to help in incubating innovations toward achieving the goals of Real digital.
According to Ripple’s CEO Brad Garlinghouse, Brazil’s crypto-friendly stance and the increase in institutional investors’ interest in the digital asset solution makes the country a good fit for the ODL.
Furthermore, he said Brazil records over $7.8 billion annually and this makes it an important market for Ripple.
Ripple Labs Continues advancement despite lawsuits
Despite the drawn-out legal battle between Ripple and the SEC which its CEO says would cost $100 million, the firm continues its advancement pursuits.
Ripple Labs is the latest on the list of potential acquirers of beleaguered crypto lender Celsius. It recently signaled interest in the assets of the bankrupt crypto lender who filed for bankruptcy protection in July.
Several financial institutions utilize its technology to cut transaction fees while also processing transactions more quickly and effectively.