Ripple (XRP) is expanding its operations in Latin America, after the project’s Head of Global Banking Marjan Delatinne in an interview on June 8 said that the project would build a new payments corridor in Brazil. Delatinne begins speaking about the payment corridor in the region at at the 1:17:34 mark.
Delatinne touted the on-demand liquidity (ODL) solutions that Ripple brings its customers, saying that there was a large roadmap that has been planned,
We extend these services now to more and more corridors, typically exotic corridors with lots of challenges, like [the] Philippines...very soon within Brazil, so let's say there is a big agenda and roadmap on that.
Ripple has previously expressed its interest in the region and has already worked with several financial institutions, including Santander Brazil, Bradesco and Banco Rendimento. The project first began its operations in Brazil in July 2019, with the focus being to draw customers to its RippleNet for cross-border payments.
The ODL that RippleNet provides is marketed as an effective way to bridge fiat currencies. Indeed, in a Q1 2020 market report released by Ripple, ODL volumes are shown to have tripled in volume as a result of money transfer services. The feature allows institutions to enable transfers without concern for pre-funding international accounts.
Delatinne spoke of this benefit as a way to avoid frozen capital,
The way we are working on this [...] is using XRP—which is our native crypto asset—as a bridge between two fiat currencies. And this is completely revolutionizing the way that the pre-funding is happening today.
Ripple has been consistently adding financial institutions to its RippleNet, which now possesses over 300 members who tap into the technology for cross-border payments. However, it has not been smooth sailing for the project in the past 6 months, with numerous lawsuits being filed and a drop in sales volume.