Even as its network of financial partners has increased around the world, Ripple is promoting its on-Demand Liquidity solution as the catalyst for instantaneous remittance.
In a recent release by the company on September 29, it stated that through its RippleNet, it has continued to redefine the trans-border remittance sphere through the “power of ISO standardization”.
It stated that the objective of the company is to make fund transfer as instantaneous as information, adding that money should be received by parties the instant they were sent, and at the required country and location.
It added that RippleNet is providing the platform through which banks and other payment platforms can interact with each other and their customers, enabling the transfer of funds, irrespective of the volume of money that needed to be sent.
This is transparently executed through a process that rigorously adheres to the ISO2022 standard,” its emphasis is on transparency and finality – features that has made blockchain technology desirable.
It highlighted that the reason international remittance has become obsolete as we knew it is absence of on-demand liquidity, since funds may not always be available at the right time to meet the demands for payment, at the time and place required.
According to the company, this is where ripple’s On-Demand Liquidity steps in as the solution for instantaneous cross-border payments. In a blog post, the company wrote:
Funds need to be placed in the right accounts in the right country at the right time to allow payments to actually flow. This need to pre-fund accounts is called the Liquidity Problem, and is one of the causes of hold-ups with cross-border payments. To solve this, Ripple has developed a solution called On-Demand Liquidity (ODL) which uses the digital asset XRP to enable funds to be sent to destination accounts immediately – literally on-demand, rather than days beforehand.”
Covid19 pandemic has prompted more institutional interest in cryptocurrencies, as seen from record high contracts at ETF platforms such as Chicago Mercantile Exchange. It is obvious that this trend would continue as more investors draw a parallel between digital assets such as Bitcoin and gold.