The blockchain cross-border payment platform Ripple has announced the first-ever liquidity on demand (ODL) system from RippleNet in collaboration with Pyypl for the Middle East and North Africa region.
In a press release, Ripple noted that the partnership aims to bring immediate and inexpensive transfers to the area with a pilot project planned for the United Arab Emirates (UAE).
Through the partnership, Ripple seeks to address issues of traditional remittances that are known to be slow and costly. In particular, the company aims to take advantage of the huge remittances of the market, which in 2020 amounted to $ 78 billion for Saudi Arabia and the United Arab Emirates combined.
“MENA remains a critical region for Ripple thanks to our excellent customer list, supportive regulatory environment and regional focus on the necessary improvements to the current financial system.”
Said Brooks Entwistle, CEO of RippleNet.
Ripple is also building on the Pyypl ODL system, which was first launched in the Philippines to find more use cases.
According to companies, financial institutions and small and medium-sized enterprises can use ODL to use previously locked, pre-financed capital to expand their business.
It is noteworthy that Ripple’s native XRP token will not be held in the UAE and transactions will not include the local currency of the AED as part of the payment flow.
Extended expansion in MENA and Asia
This development comes after Ripple established a new regional headquarters in Dubai in 2020. The office allowed the company to build a name in the region.
Ripple has recently accelerated the application of its technology in facilitating low-cost cross-border payments. For example, in cooperation with the cross-border payment provider Tranglo, based in Malaysia, it launched cross-border payments using XRP in Asia. This happened after Ripple acquired a 40% stake in Tranglo in March as part of its expansion plans for RippleNet in the Southeast Asia region.
Although Ripple is still bound by a lawsuit filed by the SEC, it is entering into significant collaborations and is constantly improving its platform.