Ripple Is Bringing Its XRP-Powered On-Demand Liquidity (ODL) Solution to the Middle East

FinTech firm Ripple has partnered with non-bank digital financial services provider Pyypl to launch global payment network RippleNet’s first-ever On-Demand Liquidity (ODL) deployment in the Middle East (starting with the UAE).

Via the ODL service, RippleNet “leverages the digital asset XRP as a bridge between two currencies, allowing you to eliminate pre-funding of destination accounts, reduce operational costs and unlock capital.”

In its blog post, Ripple started by explaining why the Middle East and North Africa (MENA) region is important:

“With $78 billion in remittances in 2020 from Saudi Arabia and United Arab Emirates (UAE) combined, the Middle East and North Africa (MENA) region is home to two of the top three remittance corridors in the world. The region is also undergoing a fast-moving shift to digital and boasts one of the world’s most progressive financial regulatory environments.“

It went on to say that by using ODL, Pyypl will “provide instant, low-cost remittance options for people sending money into and out of the region (note: XRP will not be held within the UAE and transactions will not involve the currency AED as part of the payment flow).”

Furthermore, the UAE-based FinTech firm will “use ODL to eliminate the need for the costly pre-funded accounts normally required in traditional cross-border payments.”

According to Ripple’s press release,

Brooks Entwistle, Managing Director of RippleNet in APAC and MENA, had this to say:

“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. 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.“

As for Ripple’s troubles with the U.S. Securities and Exchange Commission (SEC) — over the sale of XRP tokens (which the SEC considers an “unregistered security”) — late yesterday, Coinbase Co-Founder and CEO had this to say:

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