Everest Partners Bitso to Facilitate Cross-Border Settlement from Ripple (XRP) to Mexican Pesos.
— Everest 🏔 (@EverestDotOrg) August 3, 2022
The partners leverage XRP to allow Mexicans to receive funds in local fiat.
Leading cryptocurrency exchange Bitso has partnered with Everest, a crypto custodian offering Ripple (XRP) and stablecoins.
The partnership will enable Everest users based in Mexico to receive funds from their loved ones who reside in the United States, Singapore, and Europe.
Details of the Partnership
Bob Reid, the CEO of Everest, shed more light on the initiative, saying users can add funds to the payment app directly from their bank accounts.
The funds will first be converted to Credit tokens (CRDT). Afterward, users can also convert the CRDT to cryptocurrencies like XRP, Bitcoin (BTC), and stablecoins, which can be sent directly from the U.S., Singapore, and Europe into Mexico.
The crypto assets can be converted into Mexican Pesos and the fiat withdrawn to any local bank account in Mexico, the partners said in a statement.
Santiago Alvarado, Bitso’s Senior VP of Product, said the company’s partnership with Everest would foster its commitment to making cryptocurrency useful in cross-border payments.
He added: “Everest customers in different countries that want to send money to Mexico will be able to do so instantly and in a cost-effective manner, leveraging Bitso’s infrastructure and Blockchain technology.”
According to a World Bank study, the Mexico-US corridor is ranked as the second-largest cross-border corridor. In 2021 alone, cross-border remittance exceeded $54 billion, thus making international settlements an important aspect of Mexico’s economy.
However, conducting cross-border settlements using fiats is expensive compared to cryptos. Notably, users are required to pay up to 12% of any amount they intend to send abroad. Interestingly, the announcement adds that users will pay as little as 3% in fees with cryptocurrencies.
Everest clients are provided with instant banking rails for U.S. dollars, Singapore Dollars, Euros, XRP, and stablecoins. The company’s partnership with Bitso will enable clients to receive cross-border settlements in Mexican Pesos.
“As we continue to expand our offerings to best serve users throughout our 40+ countries of operation, enabling rapid transfers of cryptocurrencies to Mexican Pesos was a natural next step,” Reid added.