According to securities.io, Travelex Bank is the first bank in Brazil to operate exclusively in foreign exchange, which is one of the reasons why Ripple has selected it for this partnership. The two entities will work to improve international payments for their customers using Ripple’s On-Demand Liquidity (ODL). The same source reveals that many institutions in the region continue to invest in fintech solutions, especially when it comes to blockchain technology, cryptocurrency, and decentralized finance (DeFi).
Brazil processes USD 780 billion in payments each year according to Ripple, and through this partnership, these payments will be processed quicker and will be sent at lower fees. Furthermore, Travelex Bank is open to exploring new use cases, including internal treasury and bulk small- and medium-sized enterprise payments.
The partnership comes in the context of Brazil working to regulate the cryptocurrency industry by advancing legislation and creating a framework that prioritizes security and supports innovation. Ripple also observed that crypto adoption in Latin America is growing quickly as consumer interest and institutional investment surged in 2021.
Ripple launched ODL in Brazil in August 2022
In August 2022, Ripple launched its On-Demand Liquidity (ODL) in Brazil in partnership with Travelex Bank. The ODL solution allows customers to send money across borders in a fast manner with comparatively low-cost settlement and without the need to hold pre-funded capital in the destination market.
By partnering with Ripple, Travelex Bank aims to simplify customers’ access to international money through several services such as remittance and international payments, ATMs, multicurrency prepaid cards and more.
Other developments from Ripple
In the same month, Colombia has partnered with Ripple Labs, the company behind XRP, to put land titles on the blockchain and rectify unfair land distribution that has led to armed conflicts.
The project was built by Ripple in partnership with blockchain development company Peersyst Technology, and it will permanently store and authenticate property titles on Ripple’s Ledger public blockchain. The move aims to eliminate bureaucracy and make land distribution more equal.
In July 2022, Ripple partnered with Singapore-based payments institution FOMO Pay. Through this partnership, FOMO Pay will use Ripple’s crypto-enabled enterprise technology to improve its cross-border treasury flows. The solution leverages On-Demand Liquidity (ODL), which uses XRP to bridge fiat currencies.