Ripple deploys its first on-demand liquidity tool in the Middle East |
Ripple, the world’s third most valuable cryptocurrency, has officially launched its first on-demand liquidity tool in the Middle East. The company believes that this will speed up and reduce costs for cross-border payments in countries like Saudi Arabia to Kuwait; where traditional banks are not yet ready to facilitate these types of transactions themselves.
The “what is on-demand liquidity” is a tool that allows users to trade their Ripple coins without having to wait for the blockchain to confirm. This is the first time this type of tool has been created in the Middle East.
As the number of digital payments transactions in the Middle East and North Africa (MENA) region continues to rise, Ripple has teamed up with Pyypl, an international blockchain-based financial services startup, to deliver immediate, low-cost remittances to the region.
The United Arab Emirates (UAE) will be the first nation in the area to get the new services, according to the official statement.
In-market ODL deployment for the first time in the Middle East
The statement reads, “Today, Ripple announced its continued commitment to this hub of fintech innovation with the first-ever in-market On-Demand Liquidity (ODL) deployment in the Middle East.”
We’re ecstatic to announce that we’ll be bringing #ODL to the Middle East for the first time in collaboration with @Pyypl! https://t.co/I96xdXv6fw
October 26, 2021 — Ripple (@Ripple)
“The MENA area is home to two of the world’s top three remittance corridors, sending $78 billion in remittances in 2020,” Ripple said on Twitter. “We’re delighted that this relationship will drive innovation, permitting quick, low-cost remittances.”
Pyypl will offer quicker and cheaper remittance solutions for customers moving money into and out of the area by utilizing ODL and leveraging XRP.
“XRP will not be kept in the UAE, and transactions will not include the AED as part of the payment flow,” Ripple said in a statement.
Managing Director of RippleNet in APAC and MENA “Because leaders in the area are hyper-focused on setting the road for vital financial reforms,” Brooks Entwistle remarked on the relationship and expressed his optimism for the future.
Introducing digital payments to the 1 billion people who are now unbanked
The new cooperation with Ripple, according to the release, is part of Pyypl’s bigger objective to allow digital payments for the region’s one billion “financially disadvantaged” smartphone users.
“In addition to customer-facing services, Pyypl will leverage ODL to remove the requirement for the expensive pre-funded accounts that are often needed in conventional cross-border payments,” the release said.
“Unlocking these previously imprisoned money will help better build and scale the firm,” Pyypl co-founder and CEO Antti Arponen stated.
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