XRP token processes approximately 10% of remittance into the world’s third-largest remittance corridor, a Ripple Labs Inc.’s employee has said during an online section of Reimagine 2020.
The Head of Developer Relations at Ripple, Warren Anderson, during the program made the observation, saying Ripple processes 10% of funds entering Mexico through the US and the funds are generally moved through Ripple’s On-Demand Liquidity, a remittance innovation that makes use of XRP token and completely abolishes the Nostro account system employed by cross-border remittance firms across the world.
He said Ripple is releasing more information on the performance of ODL in several corridors, and so, US-Mexico, which appears to be a major corridor in the world has strong been a source of benefit to Ripple.
Payments into Mexico are largely powered by XRP, Mexican Peso with Bitso, a Mexico-based cryptocurrency exchange at the hub of almost all transactions performed through XRP in the country.
MoneyGram also Uses XRP
Bitso had said at some point that it powers 2.5% of the payment made through the US into Mexico. Interestingly, Ripple’s collaboration with MoneyGram has enhanced the increase in the rate of remittance through Ripple in the country.
MoneyGram also makes use of Ripple’s ODL, which practically indicates the second-largest Remittance firm also makes use of XRP token, however, the CEO had said the company does not hold any amount of XRP since the funds through the digital token are changed through exchanges almost immediately.
“MoneyGram is using the product one of the products they [Ripple] built called on-demand liquidity which actually uses XRP to help facilitate the cross-border payment,” Warren said.
Ripple’s Brad Garlinghouse Says US-Mexico Corridor Favourable
In fact, CEO of Ripple Brad Garlinghouse said during the First Money program on CNN that XRP was used in processing $54 million worth of transactions between the US and Mexico early February alone. By calculation, that accounted for 7.5% of all payments flow through USD and Mexican peso.
Garlinghouse believes transactions through XRP is increasing on a daily basis as companies join in RippleNet to circumvent the problems encountered using archaic cross-border remittance problems.