The payment service Ripple is teaming up with Travelex Bank to provide efficient and fast cross-border payments between Brazil and Mexico.
RippleNet’s On-Demand Liquidity (ODL) international payment service will be used to enable cross-border payments in Latin America, particularly between Brazil and Mexico. The company announced the partnership with Travelex Bank on its website.
Travelex Bank is the first bank registered and approved by the Central Bank of Brazil to work exclusively with foreign currency. It will use Ripple’s ODL technology, a service for providing liquidity for fiat currency transactions. It will simplify currency transfers, making cross-border payments virtually instantaneous and reducing commission costs by using the XPR digital asset.
Brazil is a key market for Ripple, according to Brad Garlinghouse, CEO of Ripple. The Brazilian government’s initiatives in digital currencies and blockchain technology ensure the rapid growth of the financial market in Latin America.
In April this year, the Brazilian Federal Senate approved the first bill relating to the regulation of the crypto sphere, the Bitcoin Law. In June, the country launched a state blockchain network designed to fight corruption and control budget spending.
According to Ana Tena, CEO of Travelex Bank in Brazil, in the first phase, Ripple will “support payments between Mexico and Brazil.” The bank expects that ODL will be able to provide instant settlement thanks to 24/7 access to liquidity. Over time, Travelex plans to use Ripple technology to provide treasury and wholesale payments by small and medium-sized enterprises.
Earlier, the Ripple network for cross-border payments began to be used by banks in Canada, Australia, and Israel, creating an international alliance of banking innovation. The Colombian government also uses Ripple for land titling.
