Cross-border payments are growing in importance. A prime example of this is Ripple and its ODL system. The drive for expansion, results in the renewal of a major contract and an explosion in volumes at the same time.
Fundamentals in Japan are on the rise
SBI Holdings, is one of Ripple’s main partners, and at the same time its Series C investor. This banking giant, from the very beginning, showed a positive attitude towards the blockchain company, which manifested itself in its actions. Thus, in 2021, the first deployment of the On-Demand-Liquidity [ODL] service in Japan just took place with the participation of SBI Remit Co.
The result was that SBI Africa’s cross-border platform, with the support of SBI Motor Japan, began accepting XRP payments in May of the same year. It seems that the system proposed by Ripple has worked well, as SBI has decided to renew the service, according to an official announcement:
“This time we have renewed the system to support multi-tenancy, which can connect to multiple operators. As a result, Asian Net Co., Ltd. which provides international remittance services, will be newly connected as a remittance service provider and will start services for customers starting today.”
SBI has no plans to slow down
Renewing the license is one thing. However, as it turns out, SBI has plans to steadily expand its geographic footprint. In this case, XRP could prove remarkably helpful.
“In the future, we will continue to promote the expansion of a number of domestic and foreign companies engaged in funds transfer, thus reinforcing the superiority of ODL in international remittance services and aiming to expand the use cases of crypto-assets,” the bank’s representatives announce later in the message.
For Ripple, this is excellent news. While XRP’s position within the United States is unclear due to litigation, in the rest of the world, it is looking increasingly favorable. A prime example of this is the recently launched ODL corridor between Qatar and the Philippines. And in our last piece, we reported on the partnership with Singapore’s FOMO Pay. If you haven’t read it yet, take a look at the article “XRP network reaches another milestone, with number of active unique addresses rising to record levels.”
Dizzying volume
Meanwhile, Ripple has unveiled its “XRP Markets Report,” which shows that XRP liquidity has grown rapidly over the same period. The company’s report reports:
“Q2 2022 was a record-breaking quarter for On-Demand Liquidity, as volume grew significantly, with a 9x year-on-year increase. Customers continued to expand their use of ODL for use cases beyond traditional remittances or individual payments, with treasury flows and bulk payments accounting for more volume on the network.”
