Ripple eyeing Brazil for the expansion of its remittance network

Written by: Ali Raza
June 15, 2020
  • Ripple might be planning to establish itself in Brazil, according to a recent interview with its official.
  • The official, Marjan Delatinne, spoke of the firm's plans to move to 'exotic countries,' including Brazil.
  • Further, Ripple CEO, Brad Garlinghouse, recently had a video conference with the Bank of Brazil’s president.

Crypto startup Ripple, the company behind XRP, might soon make a move to expand its operations further into South America. This conclusion came after a recent interview with Marjan Delatinne, Ripple’s head of global banking.

The interview was published on a YouTube channel Future of Finance on June 8th, and it offers some interesting insight into the company’s plans. If the conclusions drawn from the video are correct, then Ripple might be expanding its international payments corridor network to Brazil next.

Ripple targeting ‘exotic corridors’

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

The interview covered a number of topics, including Ripple’s ODL services. While discussing this, Delatinne stated that the company had plans to extend its remittance service to ‘exotic corridors.’

He then specifically named two locations — the Philippines and Brazil — as markets where individuals might want to move funds as needed, instead of keeping liquidity.

After all, Ripple already works with three different companies based in Brazil — Santander, Banco Redimento, and Bradesco. All three companies are using Ripple’s blockchain financial services network, RippleNet.

Through it, they can instantly send and receive payments to and from anywhere in the world.

Delatinne also believes that ODL can be used alongside XRP, which can bridge two different fiat currencies in international transactions. At the same time, ODL services appear to be growing in popularity.

In the first quarter of this year, Ripple’s network volume nearly tripled, while USD transactions using ODL increased by around 300%.

Convincing the regulators

There is further evidence that Ripple is preparing to move to Brazil, one of which is the announcement posted by the country’s central bank. The bank’s president, Roberto Campos Neto, recently held a video conference with Brad Garlinghouse — Ripple’s CEO — and three other representatives of the company.

Garlinghouse himself explained in the past that Ripple insists on regulatory compliance. This has been a key part of the project’s growth. The main issue is explaining to regulators that using this network does not circumvent regulatory frameworks. Once they understand that, they quickly become very comfortable with it.