Ripple identified an “urgent demand” for international remittance services in Brazil and had to lead a task force to reach the Brazilian market in a hurry, according to the XRP Arcade website .
Still in 2019, the company based in Silicon Valley, in the United States, would have discovered that there was strong market demand for sending money to Brazil, and would have started an accelerated process of accreditation of partners to integrate its Liquidity On Demand network. (On Demand Liquidity – ODL).
The ODL service is a Ripple platform that allows you to make international remittances without having to go through the conventional exchange process. Instead, the system involves using the XRP token, known for its fast, low-cost network, as an intermediary.
At one end, the sender buys XRP, which is sent to the final destination and converted back to fiat currency. Two years ago, Ripple saw that many wanted to do this to bring money to Brazil.
The company told Reuters in 2019 that opportunities in this sector would ” grow a lot in the years to come “. However, at the time he did not detail the urgency of the operation.
The company already had agreements with the Santander bank in the country to facilitate its remittance service. However, I needed to look for a partner to run the business.
Foxbit and XRP
The chosen one was the Modiax exchange. According to XRP Arcade, the integration of the partner seems to have occurred before the meeting of the directors of Ripple with the Central Bank of Brazil in May 2020.
After Modiax’s integration with Ripple, however, the company was acquired by exchange Foxbit. According to the report, the Brazilian broker says that the deal did not happen due to Ripple’s liquidity service. According to CO CEO, Ricardo Dantas, “the acquisition was strategic due to the great technology presented to Modiax”.
The executive, however, confirms that today Foxbit operates Ripple’s Liquidity On Demand in Brazil through the OTC table service. “We have a partnership for having listed the XRP ”, explains Dantas. The exchange does not reveal figures for the deal.
More recently, Ripple announced that it would test in the markets that operate ODL a new service to stimulate the creation of startups along the lines of TransferWise , which interrupted the operation in Brazil after a controversy with the bank MS Bank. In addition, the company that owns the XRP continues to hire for the office in São Paulo.
Original Source : beincrypto.com.br
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