Asia could be the next testing ground for cryptocurrency company Ripple, which is arriving with its cross-border payment broker.
In an interview on June 18 on the Thinking Crypto YouTube channel Adam Traidman, CEO of SBI Ripple Asia, a subsidiary of the Japanese financial services giant SBI Holdings, Ripple has started to introduce its ODL (On Demand Liquidity) solution in Asia.
According to Traidman SBI Ripple Asia has initiated “limited pilot and test projects” for the Ripple payment broker with various companiesFurther expansion is forecast for 2021.
“I hope things will move towards broader production later this year and next year,” said Traidman. “”I hope that transfer companies that have had limited growth due to their pre-financing requirements have a lot of capitalthat they have a lot more flexibility. “
Cheaper and faster
Ripple’s ODL solution, a payment broker using Ripple’s native XRP token as a bridge currency, can effectively reduce the cost and delivery time for cross-border transfers, which often take more than a business day to complete. According to Traidman, this eliminates currency fluctuations and prefinancing requirements for transfers.
But he says that not the best solution for all countries::
“Sending money is very expensive in Japan. It’s not that expensive in the US. So I don’t know that Ripple will replace ACH. [Cámara de Compensación Automatizada] In the USA. at this moment. The technology [ODL] It is much better suited for cross-border payments where the costs are much higher […] Ripple’s technology is great in Asia and very successful in South America. “
The ODL network is increasingly used. Ripple’s ODL payment network tripled its transaction volume in the first quarter of 2020The value of ODL transactions in USD increased by more than 294%.
RippleNet or ODL?
Cointelegraph reported this Many Asian countries are already using RippleNet’s blockchain-based financial services network for cross-border payments, including South Korea and Bangladesh.
However, other transfer serviceslike Azimo based in London, have also used ODL in Asian countries. The company has been working on a payment broker between Europe and the Philippines.
“”Asia is proving to be much more advanced in all types of payment methods“Said Traidman.