Mexico’s largest cryptocurrency exchange Bitso is reporting massive growth in the volume of its cross-border transactions utilizing Ripple and XRP.
The company’s co-founder and president, Daniel Vogel, says the remittances are rising exponentially in recent months.
“On the side of Bitso, we have seen an exponential increase in the processing of remittances through the technology of Ripple, XRP, and Bitso. In April, we processed over 4.3 billion pesos in remittances.”
Between April 2019 and April 2020, the volume of Bitso remittances grew from 7.48 million pesos or $320,000 to 4.37 billion pesos or $179 million – an increase of 55,837%.
The largest crypto exchange in Mexico relies on Ripple’s On-Demand Liquidity solution (ODL) to power its borderless transactions using XRP as a bridge currency. The remittance platform works by converting a fiat currency in one country to XRP and sending the digital asset to a corresponding crypto exchange in another country, where it’s then swapped back to fiat.
In March, Bitso executive Bárbara González Briseño said that the solution offers tangible benefits.
“We usually tend to see that a transaction, as we’re seeing through ODL, used to cost more than five times what it’s actually costing them right now… Another one is settlement, which is almost immediate, which you don’t see by any means in the traditional financial system.”
Bitso and Ripple first partnered in August of 2018, two months before Ripple officially launched ODL for use in commercial applications.