Ripple teams up with Travelex to expand XRP utility in Brazil
Travelex, a regulated foreign currency exchange in Brazil, is onboarding RippleNet to tap its increasingly popular blockchain solution for cross-border payments and settlement.
Travelex has adopted the RippleNet technology to roll out a direct remittance service for money transfers between Brazil and Mexico, with plans to support more corridors and use cases in the future.
Today’s partnership with Travelex means things are shifting for Ripple’s business across Latin America into a higher gear. RippleNet has already signed an existing roster of financial institutions and money transfer companies including Banco Rendimento, Remessa Online, Frente Corretora, Banco Topazio and B&T Câmbio.
The San Francisco-based blockchain payments company has been pushing ahead to bring faster and cheaper cross-border payments using XRP in the Latin America. Ripple opened its local office in Brazil in 2019 and has plans to continue expanding its team in the region across policy, business development and engineering.
“Brazil is a key market for Ripple given its importance as an anchor to business in Latin America, its openness to crypto and country-wide initiatives that promote fintech innovation. As a result, the market is experiencing an explosion of activity as institutions look to adopt crypto and blockchain technology to solve customer pain points,” said Brad Garlinghouse, CEO of Ripple.
“Travelex Bank is a 100% digital and 100% personal bank. We were the first exclusive foreign exchange bank approved and regulated by the Central Bank of Brazil. Focused on e-Fx transactions, we embrace tech to offer the best solutions to individuals and companies of all sizes and for the most diverse sectors,” added Ana Tena, CEO of Travelex Bank Brazil.
Through On-Demand Liquidity, RippleNet utilizes XRP as a bridge between two currencies, thus lowering operational costs, unlocking capital, and enables the users to avoid pre-funding accounts on each side of a transaction.
Travelex, which is particularly active in the travel space, joins the ranks of Ripple customers and partners in the region. However, the recent partnership is particularly noteworthy as Travelex is the first bank approved by the Central Bank of Brazil to operate exclusively in foreign exchange.
The move comes as Ripple continues to consider alternative locations for its business amid ongoing regulatory woes in the US over its cryptocurrency.
Ripple CEO said last year that the company is considering a move away from its home base in San Francisco amid regulatory quagmire around its XRP token. However, there is no indication yet from the $10 billion fintech company that such a move is going ahead soon.
Ripple is yet to decide where to pick up its new mother base, but the firm has already set up a regional headquarter in Dubai.