Ripple And SBI Holdings to Launch ODL Service For RippleNet Using XRP in Asia in 2020
The joint venture of Ripple Asia and SBI Holdings, also known as SBI Ripple Asia, has announced its plans of launching On-demand Lqiuiduty (ODL) solutions using XRP in Asia this year.
Ripple has made a name for itself because of its cross-border remittance solutions, also known as RippleNet. The firm has seen many takers for its technology, which uses XRP for liquidity on the ledger to facilitate instant cross-border transactions at a minimal cost.
The ODL solutions have been quite a hit, and given Asia is emerging as one of the fastest-growing crypto hubs, the joint venture between Ripple and SBI holdings wants to push for its adoption further.
The announcement was made by the CEO SBI Ripple Asia, Adam Traidman, during an interview on June 18, where he talked about the popularity of Ripple in Asia and how expanding ODL services would be the right move as it offers much cheaper cross-border remittance services. He said;
“I expect that probably later this year, and into next year, things are going to move into wider spread production.
I expect remittance companies that were restricted in growth because they have pre-funding requirements, they have a lot of capital—they’re going to have a lot more flexibility.”
Traidman also believes that introduction of ODL would eliminate currency fluctuations and the pre-funding requirement for making cross-border transactions. He explained ODL services wouldn’t gain the same adoption and popularity in the United States as it is increasing in Asia and Japan.
The reason for this is the US offers low-cost cross-border remittance service, so the people over there don’t need a system like ODL, while in Japan, its not only costly to send money across the border, but it also takes around a whole day. Traidman said,
“ODL can be used to convert the Japanese yen to XRP in real-time in Japan, and a family in Vietnam can immediately exchange the XRP for Vietnamese dong.
In this way, the price movements of the Japanese yen and the Vietnamese dong are almost unaffected.”
Ripple’s On-Demand-Liquidity(ODL) has seen a massive jump in use and volume, which is evident from the fact that the bulk of transactions has tripled over the first quarter of 2020, while the US Dollar transactions have risen by 294%.