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Within its new partnership with Ripple, Azimo will use Ripple’s On-Demand Liquidity service for fast payments into the Philippines.
Ripple through its official web page has announced a groundbreaking partnership with one of the largest European remittance companies Azimo. The new partnership will provide Azimo with Ripple’s On-Demand Liquidity (ODL) to provide fast and cheap remittance capabilities into the Philippines. However, plans are underway to see the services expanded to other different countries this year.
On-Demand Liquidity leverages on XRP, where it is used to bridge between two different currencies in mare seconds. This, in turn, assures the users a fast means of transfer in local currencies.
According to the statement, Azimo will benefit from the partnership by reducing its operational cost since ODL is capable of reducing liquidity cost by 60% in comparison to the traditional banking system. This will give Azimo services a cutting edge over other FX rates available in the market and return helps Ripple market its ODL project.
In his statement Azimo CEO, Richard Ambrose, he said:
“We’ve been interested in a long time in the potential of digital assets like XRP to make cross border payments better for customers. Ripple’s ODL solution has significantly reduced the cost and delivery time for cross-border transfers, and our customers are seeing the benefits.”
The news report added that the partnership marks a vital step in solving the problems involved with the traditional remittance system. The challenges include the slow process and also expensive cross border payments.
The Philippines was the first in the list since it accounts for the fourth-largest recipient of remittances from its migrant people, which according to the World Bank averages for about $34 billion.
Other remittance companies making use of ODL include Viamericas, goLance and also FlashFX. Some of the currencies available include; USD/PHP, USD/MXN, AUD/USD, and also EUR/USD.
What Ripple and Azimo Partnership Means for XRP at Large
The Ripple-Azimo Partnership has come at a time when XRP and other major crypto assets are depreciating. This will, however, be a game-changer to the XRP and Ripple company at large.
Ripple CEO Brad Garlinghouse, in an interview with CNN said that there is room for all crypto assets in the market so long as it is focused on solving customers’ problems. Ripple has been laying a strong foundation using its ODL project for XRP to thrive in the market in the near future.
With Ripple having reported transferring $54 million from the U.S. to Mexico using XRP, this will add to the market confidence, and in return XRP adoption. However, it is not all rosy for Ripple as it is facing a lawsuit, where it is being charged with selling XRP as crypto assets instead of Ripple’s stock and without proper regulations.