Ripple Partners With Travelex – Will Launch New Crypto Payment Service

Ripple partners with Travelex, as because of the introduction of On-Demand Liquidity (ODL) by RippleNet with forex provider Travelex, the company is expected to utilize the XRP coin to launch a news crypto payment service in Brazil.

Ripple Partners With Travelex

Ripple announced on August 18 that the foreign exchange business Travelex would use RippleNet’s ODL to allow cross-border payments between enterprises using Ripple’s XRP coin. It further stated that Travelex Bank is the only bank authorized by Brazil’s central bank to conduct solely foreign currency transactions.

Bom dia! Brazil is open for Ripple’s On-Demand Liquidity with Travelex—our first LATAM bank partner—and the first bank approved by the Central Bank of Brazil to operate exclusively in FX. We’re excited to bring crypto-native solutions to 🇧🇷https://t.co/G6U8nh9jIY

— Ripple (@Ripple) August 18, 2022

While other Latin American organizations such as Banco Rendimento, Remessa Online, Frente Corretora, and Banco Topazio have already used RippleNet services, Ripple claims that this is the first time a Latin American bank has used ODL.

Will Launch New Crypto Payment Service

Travelex will first enable cross-border payments between Brazil and Mexico, with ambitions to expand to other payment channels in the area and new use cases tailored to company needs.

The announcement comes after the Brazilian government enacted its first “Bitcoin law” in April 2022, which aimed to build a regulatory framework for cryptocurrencies.

Brazil is likewise in the midst of bringing out a central bank digital currency (CBDC) (CBDC). The decision, however, has sparked debate, with economist Fabio Araujo claiming that the CBDC will be able to block bank runs and put other limitations on individuals’ access to money.

Brazil’s adoption of a crypto-friendly legal environment, as well as rising institutional interest in digital asset solutions, according to Ripple CEO Brad Garlinghouse, make the country a fantastic match for the ODL:

“Brazil is a key market for Ripple given its importance as an anchor to business in Latin America, its openness to crypto and country-wide initiatives that promote fintech innovation. As a result, the market is experiencing an explosion of activity as institutions look to adopt crypto and blockchain technology to solve customer pain points.”

Garlinghouse said that Travelex’s adoption of the ODL service will make cross-border payments far more efficient, with over $780 billion in payments coming into Brazil annually:

“From day one, we’ve focused on building solutions that deliver real utility and we are excited to collaborate with an innovative partner like Travelex Bank to help move money more efficiently for the benefit of its customers across Brazil.”

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