Ripple Chief Says Payments Firm Doubling Down on XRP After Crypto Asset Hits $2 Billion Cross-Border Milestone
Ripple CEO Brad Garlinghouse says one-fifth of all transactions on its global payments network RippleNet are now performed using the crypto asset XRP.
In a live stream event during Ripple Swell 2020, Garlinghouse offered a number of updates on Ripple’s cross border payments network and its XRP-powered On Demand Liquidity (ODL) platform.
Garlinghouse says XRP and ODL are crucial to Ripple’s global expansion and its long-term success.
“In the three years that RippleNet has been live we’ve done over two million transactions with a nominal value of over $7 billion. We have hundreds of customers. We’re seeing the greatest traction across Asia… Now it’s also clear our customers are increasingly interested in emerging markets. This includes Latin America, Africa, and Asia Pacific. I also think we all can agree some of these regions were largely abandoned by traditional correspondent banking over the last decade…
It’s also clear to me that XRP is the key behind RippleNet. Its speed, its scalability and its low cost per transaction make it perfect for instant settlement and exchange of value. It was built for payments. It has real utility [and] that’s why it works.
Using XRP we launched On Demand Liquidity about two years ago… Now if you look at RippleNet as a whole about 20% of all transactions on RippleNet are using XRP or ODL and they have a nominal value of about $2 billion.”
Garlinghouse also highlights RippleNet customer Azimo’s use of ODL.
“Azimo, who has talked publicly about some of their experiences, have said they’re saving between 30% and 50% when arranging currency transfers between customers in the Philippines and those in the UK and Europe using ODL… I think we can say without reservation 2020 has been a huge year for ODL and we’re continuing to see rapid growth as we enter the back half of 2020. So we’re excited by that interest from customers, we’re excited even in the quarantine customers seeing real value from that.”
Last week Ripple announced the launch of its new Line of Credit (LOC) product, which allows ODL customers to leverage XRP for their transactions. Garlinghouse says the product reflects the company’s view that XRP is the future of RippleNet.
“With LOC our customers no longer need to restrict their capital on hand in order to facilitate cross border payments with their clients. Instead they can further invest in their business and they can enable repayment at a later date. This is the evolution of RippleNet. We’re doubling down on XRP… We’re using digital assets to solve what is clearly a very large problem measured about at 10 trillion dollars globally.”
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