Ripple’s On-Demand Liquidity (ODL) partner Bitso processed billions in crypto-powered remittances, leveraging XRP as a bridge asset for seamless US-Mexico transactions.
Key Highlights
- $3.3B Processed in 2022: Bitso handled triple the volume compared to 2021, showcasing crypto’s growing role in cross-border payments.
- XRP as a Bridge Asset: Transactions utilized XRP and stablecoins through Bitso’s Crypto for Business service, catering to remittance companies.
- Strategic Partnership: Ripple’s ODL expansion into Latin America via Bitso has driven efficiency and scalability in transnational payments.
The Rise of Crypto-Powered Remittances
Bitso’s collaboration with Ripple underscores the demand for faster, cost-effective alternatives to traditional remittance channels. Monica Long, Ripple’s President, emphasized the “real-world utility” of crypto, citing the US-Mexico corridor’s tens of billions in annual payments.
👉 Explore how XRP transforms cross-border payments
How ODL Works
- Instant Liquidity: XRP acts as a bridge currency, eliminating pre-funded accounts.
- Reduced Costs: Lower fees compared to conventional banking systems.
- Speed: Settlements completed in seconds, bypassing multi-day delays.
Market Impact and Future Outlook
Aaron Sears, Ripple’s Managing Director for the Americas, noted:
“Our partnership with Bitso enables unprecedented payment solutions in Mexico—a priority market for Ripple.”
Bitso aims to expand services, including WhatsApp-based remittances via partnerships like Félix Pago, further integrating crypto into everyday financial workflows.
FAQs
Q: Why is XRP used for remittances?
A: XRP’s low transaction fees and rapid settlement make it ideal for high-volume cross-border transfers.
Q: How does ODL differ from traditional methods?
A: ODL eliminates intermediaries, reducing costs and processing times by leveraging XRP’s liquidity.
Q: What’s next for Ripple and Bitso?
A: Expect broader adoption in Latin America, targeting SMEs and fintech innovators.
👉 Learn about crypto-powered financial solutions
Conclusion
The $3.3B milestone highlights crypto’s viability in global finance. As Ripple and Bitso enhance ODL infrastructure, businesses gain access to efficient, scalable payment networks—propelling the next wave of financial inclusion.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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