Ripple says its XRP-powered payments platform called On-Demand Liquidity is designed to trigger a foundational change to the world’s aging cross-border payments ecosystem.
In a new interview at Seeking Alpha, Ripple’s senior vice president of product, Asheesh Birla, says the company is pushing to create an instant real-time payments infrastructure that never fails.
“Despite increased attention to the space, remittance businesses still struggle to keep costs down with the World Bank citing fees as high as 7%.
RippleNet is laying the foundation for these payments with On-Demand Liquidity (ODL) — a technological offering for financial institutions to instantly source liquidity as an increasing number of upstart payment service providers and fintechs look to prioritize digital remittance systems. ODL is actively replacing the slow, expensive and outdated payments infrastructure that exists today to address global demand for more efficient cross-border transactions.”
Formerly known as xRapid, ODL is designed to give banks and financial institutions a regulated way to send fiat across borders in an instant using XRP as a bridge currency.
Ripple has officially opened two destination corridors for ODL – one in Mexico and the other in the Philippines. The San Francisco startup says it’s pushing to launch additional corridors by working with regulators and searching for new market makers.
Birla says Ripple’s partnership with MoneyGram, which will utilize ODL, will play a key role in the long-term adoption of the technology.
“As our global partner, MoneyGram will utilize RippleNet and leverage XRP in cross-border money transfers.
Since MoneyGram is one of the world’s largest money transfer companies, RippleNet will have the opportunity to dramatically expand its network into several high friction payment destinations where remittances flows are high and pain points of cross-border payments are felt by end users and financial institutions alike.”
You can check out the full interview here.
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