Ripple launched a new On-Demand Liquidity (ODL) payment corridor between Japan and the Philippines
Ripple, the blockchain company behind XRP, is expanding on-demand liquidity (ODL) services in the Asia Pacific region with the launch of the first-ever live ODL in Japan.
Announcing our newest On-Demand Liquidity corridor in (drumroll please…) JAPAN 🇯🇵! https://t.co/xiHXnYjo6z
— Ripple (@Ripple) July 28, 2021
The ODL product makes it possible to instantly convert XRP to the Philippine peso
Japan is Ripple’s biggest market for remittance business and its RippleNet technology is quite popular in the region. The ODL services play a key part in the RippleNet adoption as it allows for cheap and faster cross-border transactions using XRP liquidity.
The first ODL services in Japan would be incorporated by Ripple’s key strategic partner SBI Remit in association with Philippine crypto exchange Coins.ph along with digital asset exchange SBI VC Trade.
Ripple hopes the first implementation of ODL in Japan would help it increase the adoption of the popular tech.
“We see tremendous potential in leveraging blockchain technology to transform not only the way payment transactions are made but in how we manage our business by unlocking trapped capital,” said Nobuo Ando, Representative Director of SBI Remit. “The launch of ODL in Japan is just the start, and we look forward to continuing to push into the next frontier of financial innovation, beyond real-time payments in just the Philippines, but to other parts of the region as well.”
Ripple targets a $1.8 billion Filipino remittance corridor. Meanwhile, Japan is home to a significant portion of the foreign population coming to the country to work. One such sizable ex-pat community in Japan comes from the Philippines, which has the third-largest foreign population in the country. Every year, these foreign nationals send money back home using traditional money transfer and foreign exchange services.
It is estimated that the Filipino community accounts for $1.8 billion in remittance flows. Sending money through traditional methods can be slow and expensive, so Ripple hopes to tap the market with its newly launched ODL services. Ripple hopes to capture the burgeoning remittance market by partnering and enabling more crypto platforms in the region to adopt its ODL services.
Ripple is currently battling a significant lawsuit filed by the US Securities and Exchange Commission that has impeded its business in the US. However, Ripple continues to build partnerships new in the Asia Pacific Region, especially Japan.
Here’s Ripple strongest defense against the SEC
Elsewhere, crypto legal expert Jeremy Hogan has named what he thinks is Ripple’s strongest defense against the SEC. In it, Hogan addresses how the price of XRP is closely correlated with other cryptocurrencies, such as Bitcoin or Cardano.
According to Hogan, if XRP were security, its price should be correlated with Ripple’s actions and not with the performance of other cryptocurrencies. The attorney says the correlation with other crypto assets is likely Ripple’s strongest defense in their lawsuit with the top regulator.
“In other words, Ripple ended its partnership agreement, for example, on March 9th with Moneygram and nothing happened to XRP’s price. However, according to this research paper, the price of XRP is heavily correlated with Cardano. 71% correlated according to the experts… Ripple has briefly touched on this part of their defense, but this is the first time I’ve seen that it correlates so strongly with Cardano,” Hogan stated.
“Ripple can announce a great business deal, the XRP price won’t budge much. But if the price of Cardano falls 10%, you’d expect to see the price of XRP fall 7.1%. That is not how a security acts. I really hope that Ripple has good expert witnesses lined up and statistical correlation.”
XRP/USD 1-hour chart | Source: TradingView
At press time, XRP price is up more than 14% in the past 24 hours. The reason is probably due to the above positive news.
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