Ripple, the leading provider of enterprise blockchain and crypto solutions for cross-border payments, announces the launch of RippleNet’s first-ever On-Demand Liquidity (ODL) deployment in the Middle East, together with Pyypl, the international blockchain-based financial services technology company in the Middle East and Africa.
ODL leverages XRP, the best digital asset for payments, for instant and low-cost cross-border payments, eliminating the need for costly pre-funded accounts.
Ripple was the first enterprise company to leverage crypto to tackle the trillion-dollar challenges with cross-border payments. By using ODL, financial institutions and Small-and Medium-Sized Enterprises (SMEs) can now leverage previously trapped, pre-funded capital to grow and scale their business.
“MENA continues to be a critical region for Ripple thanks to our outstanding roster of customers, a welcoming regulatory environment and a regional focus on the needed improvements in the current financial system,” said Brooks Entwistle, Managing Director of RippleNet in APAC and MENA. “The establishment of yet another first-in-market ODL launch demonstrates the understanding that digital assets will play a central role in the future of global payments. We are delighted to partner with forward-thinking companies, like Pyypl, to ensure we can continue to break the status quo in the current global financial system to continue delivering the best experience for customers.”
The Middle East contains two of the world’s three largest remittance corridors with the UAE and Saudi Arabia, handling a combined $78 billion in payments in 2020. The region has also experienced a rapid transition to digital in the last year making it a market that is primed for fintech innovation.
Antti Arponen, Co-Founder and CEO of Pyypl, commented “We’re excited to be Ripple’s first partner of choice to bring the deployment of ODL to the Middle East. This enables our ever-increasing number of users to deliver remittances instantly and cost-effectively. We’ve also reduced our inefficient use of capital through ODL, and look forward to an exciting rollout of its capabilities across the region.”
Pyypl has started with ODL in the Philippines and has plans to expand to new markets as well as exploring additional use cases. XRP will not be held within the UAE and transactions will not involve the currency AED as part of the payment flow. Pyypl is licensed by ADGM’s Financial Services Regulatory Authority.
Supported by the establishment of a new regional HQ in Dubai in 2020, Ripple already has a significant presence in MENA and is now witnessing 4X growth in transaction volume YTD compared to 2020.
RippleNet continues to see traction around the globe. In APAC, Ripple announced its first-in-market ODL corridor in Japan, in partnership with SBI Remit, and acquired a 40% stake in Tranglo in Malaysia to expand the availability of its ODL service.