Ripple wants to replicate its success in the US to Mexico remittance corridor in other jurisdictions across the globe
Ripple On-Demand Liquidity (ODL) product, which utilizes XRP, allows near-instant transfer and conversion of currencies. However, despite enthusiasts clamoring for the adoption of XRP by many more banks and financial institutions due to these advantages, the digital asset has failed to gain much traction. Interestingly, Ripple CEO has recently indicated that the company is seeing more demand for its XRP-based product than it can presently cater to.
Ripple working tirelessly to expand the utility of its cross-border remittances token, XRP
Ripple’s XRP-based On-Demand Liquidity service matches the firm with crypto exchanges and financial institutions, making it possible for fiat transactions to be settled within seconds. This is typically easy as long as there is enough liquidity in the XRP marketplace.
To ensure that this liquidity is always enough, Ripple had to limit the growth of the XRP payments product. Brad Garlinghouse revealed this during a phone interview with Modern Consensus where he postulated:
“The company has throttled that growth because one of the things that’s important when using ODL is you have to have excellent liquidity on both sides of the transaction. And so, if XRP doesn’t have enough liquidity in the marketplace, then you can’t put as much demand through.”
The CEO also noted that the demand for the On-Demand Liquidity product has dramatically surpassed that for RippleNet, which does not leverage XRP. This was corroborated by Ripple’s senior vice president of product and corporate development, Asheesh Birla, who just last week observed that over 20% of the transactions on the company’s global network use XRP via the ODL.
Moving forward, Ripple recently tapped ex-Goldman Sachs Executive Director, Aditya Turakhia, who was in charge of Global FX and Emerging Markets Franchise Management. At Ripple, he will serve as the firm’s Senior Manager Global Institutional Market, where he will be responsible for onboarding more crypto exchanges and market makers to bolster the XRP liquidity.
The Blockchain giant wants to replicate its success in the US to Mexico remittance corridor
In a recent fireside chat hosted by Reed Catalado, founding partner at blockchain consulting firm Prysm Group, DeWitt says the company is looking to accelerate its expansion plans.
“We have a game plan, and we’re going to roll that out into multiple jurisdictions around the world, and we’re going to escalate the speed with which we’re able to do that. I love liquidity. I think liquidity begets liquidity. I think success begets success, and the markets where we see that we’re going to replicate that and grow that footprint and improve peoples’ lives in multiple jurisdictions, not just the Philippines, Europe, and Mexico, but all around the world.”
Ripple partner Bitso, a Mexican crypto exchange, processes 2.5% of remittance payments from the US to Mexico. Bitso recently hit the one million customer mark, according to Santiago Alvarado, the exchange’s director of cross-border payments.
Ripple, known for its high turnover, is also looking to bring on more people as it expands to new corridors, according to DeWitt.
“I think Ripple stands out, especially with the work we’re doing with Bitso as a company that is delivering real utility today that is affecting people’s lives in a way outside of just speculative trading… If that’s attractive to you, reach out to us because we are so hungry for talent in this space. We’re growing so fast. We need people to join that journey with us and help us do it.”
Ripple is currently advertising 22 job openings on its website.
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