Asia may become the next big market for crypto firm Ripple to reach with its cross-border payments corridor. The CEO of the SBI Ripple Asia, Adam Traidman In an interview on the YouTube channel Thinking Crypto, Adam Traidman said that Ripple has started to roll out its On-Demand Liquidity (ODL) solution in Asia. SBI Ripple Asia is a subsidiary of Japanese financial services giant SBI Holdings. According to the CEO, SBI Ripple Asia has started “limited trial and pilot projects” with various companies for the company’s payment corridor, with greater expansion forecast for the next year.
Adam Traidman expects a wider spread production later this year.
Adam Traidman is expecting that probably later this year, and into next year, things are going to move into wider spread production. He added, “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.” Ripple’s ODL service is used for cross-border payments as it helps reduce the cost and time of transfers that usually take more than one business day to settle. The CEO noted that this eliminates the possibility of currency fluctuations and pre-funding requirements in cross-border transfers.
Several countries are already using Ripple’s ODL.
Ripple Lab’s ODL network is rising in usage. The ODL payments network tripled in transaction volume during the first quarter of 2020, while the USD value transacted using ODL increased by more than 294%. The SBI Ripple CEO said that the ODL technology is much more suited for cross-border payments where the costs are a lot higher. He added that Ripple’s technology is great in Asian and South American countries as costs for cross-border payments are higher there. Ripple is currently facing several lawsuits over its native toke XRP. Several investors in the cryptocurrency have claimed that the Ripple Labs sold them unregistered security. However, Ripple has claimed that XRP is not a security.