Ripple has formed yet another alliance, this time with Novatti, a global payments company.
Novatti will use RippleNet’s On-Demand Liquidity (ODL) service, which leverages XRP for instant, cross-border payments, to power remittance services from Australia to Southeast Asia. According to a blog post on Ripple’s official website:
“Live now, Novatti expects to process several thousand transactions a month through RippleNet and is planning to quickly scale the service to more fintech customers and other countries in Southeast Asia.”
According to Ripple’s official announcement, the collaboration initially centered on remittances between Australia and the Philippines through Filipino-owned remittance service provider iRemit. After India and China, the Philippines is currently Asia’s third-largest remittance recipient, with Filipinos abroad sending home $33.19 billion USD in 2020. Ripple went into greater detail on how XRP can be used to power remittance services.
ODL will immediately bridge currencies using XRP, a digital asset designed for payments, removing the need for pre-funded accounts. This frees up resources and lowers operating costs, resulting in savings that can be passed on to consumers and put to better use,” the team wrote.
Despite its legal dispute with the Securities and Exchange Commission, Ripple’s fintech momentum has persisted (SEC). The SEC is currently suing the blockchain company for $1.3 billion over XRP, which the agency considers to be an unregistered digital asset protection.
Nonetheless, Ripple CEO Brad Garlinghouse stated that the company’s remittance sector growth has continued to accelerate, with a fivefold increase expected in 2020. Despite the fact that some firms, such as MoneyGram and Tetragon, have ended their partnerships with Ripple since the litigation in December, the company has added at least 15 new customers.
According to Garlinghouse, the majority of Ripple’s business took place outside of the United States, in the Asia Pacific Region. He had previously contemplated moving Ripple’s headquarters out of San Francisco, citing the US’s lack of regulatory clarification on cryptocurrencies as a barrier.
Following multiple court victories, XRP has reclaimed its place as the fourth-largest cryptocurrency on the market. Its value has risen, and the token is now valued at $1.72 on CoinMarketCap, up from $0.20 in December 2020, when the SEC filed a complaint against Ripple.
With Gary Gensler, the former chairman of the Commodities and Futures Trading Commission, joining the SEC as the new chairman, Garlinghouse hopes that there will be an opportunity to reconsider how XRP is viewed in the United States.