American FinTech firm Ripple has announced that Travalex Bank — a subsidiary of Travelex, which is the world’s largest exchange business specialist — in Brazil has started using its XRP-powered On-Demand Liquidity (ODL) solution.
ODL uses XRP as a bridge currency, “enabling instant and low cost settlement without the need to hold pre-funded capital in a destination market.”
Travelex is apparently “the first bank registered and approved by the Central Bank of Brazil to operate exclusively in foreign exchange.”
Ripple’s press release went on to say that “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” and that “crypto adoption in Latin America is growing quickly as consumer interest and institutional investment surged in 2021.” It seems that “more than $780 billion 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.”
Ripple CEO Brad Garlinghouse had this to say:
“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. 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.“
Ana Tena, CEO of Travelex Bank Brazil, added:
“Travelex Bank is a 100% digital and 100% 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.“
And João Manuel Campanelli, Chief Business Development Officer of the Travelex Group, stated:
“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. 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 utilizing its power for real use cases that can dramatically change the way we move and manage money.“
The press release also mentioned that via 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.” Initially, 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.”
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