Ripple’s global head of banking Marjan Delatinne is offering new insight on MoneyGram’s use of the XRP-based payment solution called On-Demand Liquidity (ODL).
At the Asia House Global Trade Dialogue in Singapore, Delatinne said MoneyGram is already up and running with ODL in a handful of countries like Mexico and Thailand.
“MoneyGram, for instance, is a case that went live recently.
They are using this solution in a few markets, as I mentioned in more exotic markets like Mexico, Thailand – and they see already a great efficiency decrease in the costs in the way that the treasury and liquidity management is happening.”
Delatinne also outlines the mechanics of how ODL works and the impact Ripple believes it could have in the world of cross-border payments, especially in emerging markets.
“So imagine you’re a payment service provider and you want to send $100 to Mexico. You use our native digital asset, which is called XRP, as a bridge currency between the two fiat currencies. So changing from USD to XRP and immediately after to the Mexican peso.
This is really revolutionizing the way that money is handled because today FX and the transfer of money are not happening at the same time. And this creates a lot of exposure, especially to low margin organizations…
This still, of course, needs to be more commercialized. But this is really shifting the way that we think about the transfer of money compared to what is [happening] today.”
Ripple says 24 of its 300+ clients have signed up for ODL since its launch in October of 2018.