Ripple is a new era, a real-time gross settlement platform focused on efficiency, cost savings and speed. And they may be secretly monitoring the busy, high-volume EUR / USD corridor.
While Ripple and Ripple Labs, the issuer of XRP, are two separate entities, the incorporation of XRP by banking institutions remains a challenge due to regulatory concerns.
Ripple as an efficiency platform
Banks are reluctant to risk, preferring to sit on the sidelines until there is clarity.
Although more than 300 banks are connected to RippleNet, a suite including On-Demand Liquidity (ODL) – formerly x-Rapid, xCurrent and xVia, only a few take advantage of XRP and ODL.
There are benefits such as cost savings and instant settlement as shown by several pilot programs, but court cases and lack of clarity are certainly an obstacle.
For financial institutions using ODL, partner exchanges, including Bitstamp, Coins.ph and Bitso, are essential.
Liquidity On Demand Partners (ODL)
These exchanges allow the successful implementation of ODL, allowing the smooth conversion of funds from one currency to another instantly and at lower cost with XRP as a bridge.
Bitso facilitates the movement of funds between the United States and Mexico, opening the busy corridor.
Coins.ph allows the free flow of funds from the Philippines and the United States, while Bitstamp allows the movement of funds between the United States and Australia.
The USD-AUD movement is made possible by Flash FX which activated ODL.
FlashFX: Fund Your Bitstamp USD Account in Minutes
– FlashFX (@fxflash) December 2, 2019
Flash FX also uses the new Australian payment platform (NPP) which simplifies and accelerates transactions between different financial institutions in Australia.
Ripple looking at the EURUSD corridor?
Although AUDUSD is busy and one of the most active pairs in the FX market, there is speculation that Ripple is staring into the more fluid and deeper EURUSD market.
EURUSD orders 23% of all foreign exchange transactions in 2016, as the United States and the EU are two of the world’s largest economies.
Citing a Ripple report from the fourth quarter of 2019, the ardent supporter said that despite the low volumes of ODL, it was wise to look at what the company is doing:
“In addition to the USD-MXN and USD-PHP ODL corridors, the company went into production with ODL payments from Australia in USD and PHP, and a new ODL production corridor from EUR-USD. Plans for additional corridors across APAC, the EMEA region and LATAM are underway for 2020. “
Don’t listen to what Ripple says, watch what they do …
Chasing high friction corridors, they say …
launches EUR / USD in ODL, the most liquid corridor in the world!
AUD / USD is also liquid.
Will there be JPY / USD? Https: //t.co/IJh4F4nB53https: //t.co/79RRxyNzVf pic.twitter.com/4FK1fvap9L
– Anders Lundberg (@X__Anderson) April 10, 2020
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