Ripple Is Teaming Up With A Lithuanian Fintech Company.
Ripple continues to spread its wings to cover as many regions in the world as possible, even as the US SEC mounts a legal face-off against the company. The company is known for its expansive blockchain network that enables financial entities to send cross-border payments to interact with each other much more easily than traditionally set on other platforms like SWIFT.
Ripple is now making another move to introduce its services and payment platform in Lithuania. It’s partnering with a Lithuanian fintech company, FINCI, already established in 29 countries with a Mastercard-powered debit card and an intuitive app on iOS and Android, allowing customers to easily send and receive payments worldwide and in multiple currencies.
Now, FINCI will adopt Ripple’s ODL (On-Demand Liquidity) system as part of the RippleNet service to enable it to facilitate cross-border payments to Mexico.
No Need To Pre-fund Accounts In Foreign Countries
ODL uses Ripple’s native crypto, XRP, to settle payments between two entities in different countries. This eliminates the need for the financial institutions to pre-fund their accounts abroad XRP is used to mediate the payments on ODL and then settle the payments on either side in local currencies. This is a huge advantage to the entities involved since it allows them to retain their capital and expand their business on their side.
Besides the usage of XRP, Ripple’s ODL makes cross-border payments fast and secure. Other traditional systems, like banks, take days and sometimes weeks to settle international payments. With RippleNet, ODL, and XRP, this takes a few seconds to settle. This is one reason why Ripple has attracted many financial entities, including some central banks, to RippleNet.
Ripple Is Getting Popular In Europe
Lithuania has been known as one of the most crypto-friendly countries in Europe. The country is also the first in Europe to create its own CBDC. That said, the partnership between Ripple and FINCI could be the gateway to bringing the larger Europe onto RippleNet. In fact, Ripple is already loved in Europe.
Recent market research by the company indicates that around 70% of the people working in financial institutions in Europe believe that blockchain technology will have a huge impact on the banking industry within the next 5 years. Also, close to 60% of them are already open to using the new technology right now.
This means that a fair majority of potential customers in Europe are ready for Ripple’s blockchain-based products. Ripple has seen an influx of new clients joining its payment system, with the peak happening in 2021. The ODL is now operational in 25 markets, including Malaysia, Indonesia, Poland, Singapore, and Thailand. Besides FINCI, Ripple has partnered with other companies like SBI Remit, iRemit, Azimo, Pyypl, Novatti, Tranglo, and FlashFX.
The payment system is now handling around $15 billion in annual transaction volume, and the partnership with FINCI is likely to increase this figure significantly.