Ripple Executive Says Institutional Trading Boosting XRP Behind the Scenes, With Cryptocurrency Exchange Bitso Taking the Lead

Institutional traders are bringing greater liquidity to Ripple’s XRP-powered cross-border payment product, On-Demand Liquidity (ODL), according to the company’s vice president of global institutional markets.

Ripple VP Breanne Madigan says that XRP liquidity is the “lifeblood” of ODL, lowering the risk and cost of each cross-border transaction.

“The continued growth of ODL has led to an expanding number of financial institutions, payment providers and market-makers to trade in XRP. The resulting increase in institutional trading volume has helped to bring further liquidity to XRP, specifically in ODL corridors – in spite of the recent market turbulence surrounding the COVID pandemic.”

Bitso, the largest crypto exchange in Mexico, has expanded its reach by utilizing ODL, dramatically increasing its XRP/peso volume.

It now also processes 2.5% of remittance transactions from the United States to Mexico, the third-largest remittance market in the world — an achievement that the company’s leadership chalks up to their partnership with Ripple.

According to Bitso head of finance Barbara Gonzalez Briseno, Ripple’s technology has enabled them to charge only “a fraction of (traditional) wire transfer fees.”

Madigan says that exchanges that aren’t ODL partners can also help increase XRP liquidity going forward.

“But even non-ODL partner exchanges like Kraken or Coinbase will contribute to increased liquidity. As non-ODL partner exchanges continue to grow more mainstream, larger institutional traders will begin transacting in XRP, making order books – including ODL order books—more liquid.”   

Check Latest News Headlines

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Irving Sandoval

Source Link