Ripple, the enterprise blockchain and cryptocurrency solutions provider, has announced the launch of RippleNet’s On-Demand Liquidity (ODL) in Brazil with Travelex Bank, the first bank in Latin America to utilise ODL. Travelex is the first bank registered and approved by the Central Bank of Brazil to operate exclusively in foreign exchange.
By utilising XRP, a digital asset ideal for payments, Ripple’s ODL solution allows customers to send money across borders instantly with very low-cost settlement and without the need to hold pre-funded capital in the destination market.
“Brazil is a key market for Ripple given its importance as an anchor to business in Latin America, its openness to crypto and country-wide initiatives that promote fintech innovation. As a result, the market is experiencing an explosion of activity as institutions look to adopt crypto and blockchain technology to solve customer pain points,” said Brad Garlinghouse, CEO of Ripple. “From day one, we’ve focused on building solutions that deliver real utility and we are excited to collaborate with an innovative partner like Travelex Bank to help move money more efficiently for the benefit of its customers across Brazil.”
Brazil has taken a proactive approach to regulating the cryptocurrency industry by advancing legislation to create a framework that both protects consumers and fosters innovation. Simultaneously, crypto adoption in Latin America is growing quickly as consumer interest and institutional investment surged in 2021. More than $780billion payments are sent into Brazil annually, making it an opportune market for both Ripple and its customers who will benefit from the capabilities of cryptocurrency to enable cheaper and faster cross-border payments.
Travelex Bank aims to simplify customers’ access to international money through a number of services including remittance and international payments, ATMs, multicurrency prepaid cards and more.
“Travelex Bank is a 100 per cent digital and 100 per cent personal bank. We were the first exclusive foreign exchange bank approved and regulated by the Central Bank of Brazil. Focused on e-Fx transactions, we embrace tech to offer the best solutions to individuals and companies of all sizes and for the most diverse sectors,” said Ana Tena, CEO of Travelex Bank Brazil.
The company was looking to deliver a better customer experience to its partners, who have limited capital to cover the costs of pre-funding, which was hindering their growth. Through the use of ODL, Travelex will deliver near instant settlement and access to liquidity 24/7/365, allowing them to better grow and scale their business. At launch, Travelex will support payments between Mexico and Brazil, with plans to support more corridors and use cases, including internal treasury and bulk small and medium-sized enterprises (SME) payments, in the future.
“We view this partnership as a strategic opportunity that will bring the benefit of crypto to many in the region in a safe and compliant way,” said João Manuel Campanelli, chief business development officer of the Travelex Group. “Travelex has always been a forward-looking company and we’re pleased to be leading the charge of traditional financial institutions who are embracing the benefits of crypto and utilising its power for real use cases that can dramatically change the way we move and manage money.”
Travelex joins the ranks of Ripple customers and partners in the region including Banco Rendimento, Remessa Online, Frente Corretora, Banco Topazio and B&T Câmbio who are experiencing the benefits of RippleNet. Ripple opened its local office in Brazil in 2019 and has plans to continue expanding its team in the region across policy, business development and engineering.
Ripple was the first enterprise company to leverage crypto to tackle the multi-trillion-dollar challenges with cross-border payments. RippleNet leverages blockchain technology to help partners across a global network accelerate their business performance and scale. It delivers a superior end-customer experience, simplified network partnering, liquidity management solutions, lines of credit, and state-of-the-art infrastructure to enable real-time payments.