Ripple has brought its On-Demand Liquidity (ODL) offering to Latin America through a partnership with Brazil's Travelex Bank.
ODL taps Ripple's XRP digital asset to enable customers to send money across borders instantly with very low-cost settlement and without the need to hold pre-funded capital in the destination market.
Digital lender Travelex is the first bank registered and approved by the Central Bank of Brazil to operate exclusively in foreign exchange, working to simplify customers’ access to international money through remittance and international payments, ATMs, and multicurrency prepaid cards.
Travelex turned to Ripple to help its customers, who have limited capital to cover the costs of pre-funding. Through the use of ODL, it is promising to deliver near instant settlement and access to liquidity 24/7/365.
At launch, Travelex will support payments between Mexico and Brazil, with plans to support more corridors and use cases, including internal treasury and bulk small and SME payments, in the future.
"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," says Brad Garlinghouse, CEO, Ripple.