- Ripple has partnered with financial services company Pyypl to facilitate ODL using XRP.
- This will allow for instant and low-cost cross-border payments while eliminating the need for costly pore-funded accounts.
San Francisco-based blockchain startup Ripple is increasing its stronghold in one of the strongest remittance corridors – the Middle East and North Africa (MENA). On Monday, October 25, Ripple said that it is preparing for the first-ever in-market On-Demand Liquidity (ODL) deployment for the Middle East.
For this, Ripple has partnered Pyypl, an international blockchain-based financial services tech company. This on-demand liquidity deployment will leverage XRP. It will further help in facilitating instant and low-cost cross-border payments while eliminating the need for costly pre-funded accounts.
Pyypl noted that this is part of the company’s larger mission to enable digital payments for a billion smartphone users in Africa and the Middle East. As said, the OLD deployment will help Pyyl to solve one of the biggest issues of pre-funded accounts as seen with traditional cross-border payments.
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Pyypl’s co-founder and CEO Antti Arponen referred to these legacy accounts as “inefficient use of capital”. He further noted that unlocking these previously trapped funds can help to better grow and scale the businesses. Arponen said:
We’re excited to be Ripple’s first partner of choice to bring the deployment of ODL to the Middle East. This enables our ever-increasing number of users to deliver remittances instantly and cost-effectively. We’ve also reduced our inefficient use of capital through ODL, and look forward to an exciting rollout of its capabilities across the region.
Unlocking massive opportunities in the MENA market
The traditional players in cross-border payments have been pretty laggard in implementing innovative solutions. Ripple is solving the trillion-dollar challenges of this industry using its ODL services.
Besides, Ripple notes that the Middle East caters to two of the world’s three largest remittance corridors with Saudi Arabia and the UAE. Last year in 2020, the Middle East handled combined payments worth $78 billion. Besides, the Middle East has made a rapid transition to digital in the last year as it prepares for the upcoming FinTech revolution. Brooks Entwistle, Managing Director of RippleNet in APAC and MENA said:
MENA continues to be a critical region for Ripple thanks to our outstanding roster of customers, a welcoming regulatory environment and a regional focus on the needed improvements in the current financial system. The establishment of yet another first-in-market ODL launch demonstrates the understanding that digital assets will play a central role in the future of global payments. We are delighted to partner with forward-thinking companies, like Pyypl, to ensure we can continue to break the status quo in the current global financial system to continue delivering the best experience for customers.
Before entering the MENA market, Pyypl has already started its ODL services in the Philippines. Pyypl holds the license from ADGM’s Financial Services Regulatory Authority.
The announcement has not had a major impact but XRP continues to trade just above $1.10 after gaining around 2 percent in the last 24 hours.