The United States-based company, Ripple recently announced a new partnership with SBI Remit, a Japanese remittance company to revolutionise payments from Japan to the Philippines through the use of its on-demand liquidity (ODL) service.
This is Ripple’s first On-Demand Liquidity (ODL) service deployment in Japan, paving the way for greater crypto-enabled service uptake in the country. Ripple’s latest collaboration will bring together mobile payments company Coins.ph and SBI VC Trade to provide clients a cheaper remittance option. This will be feasible owing to the use of XRP to eliminate the need for pre-funding. Nobuo Ando, Representative Director of SBI Remit said,
We see tremendous potential in leveraging blockchain technology to transform not only the way payment transactions are made but in how we manage our business by unlocking trapped capital, the launch of ODL in Japan is just the start, and we look forward to continuing to push into the next frontier of financial innovation, beyond real-time payments in just the Philippines, but to other parts of the region as well.
The Philippines is the third-largest recipient of remittances from Japan, which has one of the world’s highest remittance prices (10.50 percent) nearly twice as much as the average of all G8 countries (5.92 percent). The new partnership is a big step forward for Ripple, which wants to be a part of the $1.8 billion in remittances from Japan to the Philippines every year.
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The announcement follows similar collaborations with Novatti and Tranglo, as well as Ripple’s recent appointment of financial and technology expert Brooks Entwistle as Managing Director of Southeast Asia. Ripple is ideally positioned to meet APAC’s rising need for quicker and more economical cross-border payment solutions today, while also assisting regional companies in preparing for the larger enterprise move to a tokenized future, which is now well underway.
Ripple has been a well-known partner for traditional banks looking to modernize their cross-border remittance services by demonstrating the usage of cryptocurrency in monetary transactions.
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