Connecting people – Present on the cryptocurrency market since 2012, the company Ripple – and its token the XRP – often make headlines because of his troubles with American justice. But behind the scenes, partnerships are knotted and the technology attracts more and more players in international finance. Lately, it is therefore Lithuania that Ripple has settled down and rolled out its cross-border payment protocol. Direction Vilnius, considered one of the most important European capitals crypto friendly.
Ripple seduces cross-border payment specialists…
Ripple has made money transfers in the world its specialty and already collaborates with many companies in the sector. The company is present in more than 25 financial markets including Singapore, Malaysia, Indonesia and Thailand. Quite naturally, it wishes to strengthen its presence by Europe. After Poland, Lithuania is therefore the next stopover. In this dynamic, a partnership was announced with FINCI on May 18th.
This FinTech company is a global specialist in payments for individuals and businesses. It is present in almost 30 countries. It is its Lithuanian subsidiary which has just formalized a partnership with Ripple. Its CEO – Mihails Kuznecovs – welcomes this:
“We are excited to work with Ripple to enable [à nos] customers to transfer money more easily around the world. We share the same fundamental objective of removing bottlenecks affecting international payments. »
He even adds:
“The cost savings and operational improvements we will achieve by using Ripple’s ODL will allow us to reinvest money into the business and improve our customer offering. »
Ripple’s ODL? Qu’es aquò ?
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…with cryptocurrency-based technology dedicated entirely to fiat transfers
The networks developed by Ripple are called: the RippleNet, XRP Ledger and Ripple X. But today it is particularly RippleNet which interests us. For more information, see the article published last January on this subject. This network – RippleNet – is based on the system of demand-on-liquidity (ODL).
The principle is easy to understand. At a transfer money from one country to another, the ODL system will fluidify the transaction using the XRP token as a gateway between the two currencies. Instead of having to pre-fund the destination account in the local currency and therefore provision twice the amount, ODL will use the liquidity cryptocurrency to fill this temporary void. The idea being to make cross-border payments in seconds instead of days. This will therefore reduce operational costs and thus free up capital for the companies concerned.
The managing director of Ripple Europe – Sendi Young – is therefore pleased with the situation. He intends to convince other European players in theinterest of its technology:
“Cross-border payments have traditionally been slow, complex and unreliable. ODL is the first enterprise solution to solve these problems by harnessing the liquidity of global cryptocurrency, giving our customers a whole new way of doing business. (…) We are delighted that FINCI is our last ODL deployment in Europe and we look forward to announcing other European partners soon. »
According to a study by Ripple, almost 70% of respondents in financial institutions in Europe believe that blockchain will have “a massive or significant impact on their business over the next 5 years”while 59% of respondents want “using blockchain for payments”. Ripple therefore continues to weave its web and grows. The company finances research programs to prepare for its future.
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