Ripple, a payment solutions company disclose The launch of a new corridor between Japan and the Philippines.This is the company’s first On-demand liquidity (ODL), A payment solution using the token XRP in Japan.
According to Ripple, the corridor was launched in cooperation with SBI Remit, one of the country’s most famous remittance institutions and the leading mobile wallet Coins.ph in the Philippines. The payment solution connects the wallet with the digital exchange platform SBI VC Trade on RippleNet.
So people from these countries can use this Ripple payment channels benefit from fast, Low-cost and cross-border currency transactions. Japanese consumers can eliminate the need for pre-financing transactions and reduce the cost of sending money from the country to the Philippines.
Ripple added in a press release that, as a result, Japanese consumers and entities can gain access to capital by building fast, low-cost bridges between countries, and may promote the expansion of its payment business. Brad Garlinghouse, CEO of Ripple Famous Launch of the new corridor:
Very excited about our newest ODL corridor-Japan is one of our biggest markets. With clear regulation and innovative partners such as SBI, the region is ready for the future of cryptocurrency.
Asheesh Birla, Ripple’s RippleNet general manager, called this collaboration an important milestone for the company’s “largest market.” Birla added:
We are very happy to work with forward-looking companies such as SBI, which see the value of blockchain technology and support them in preparing for the future of cryptocurrency.
Ripple improves payment trajectory between the Philippines and Japan
The expansion of the payment corridor and the cooperation between SBI and Ripple seeks to become an alternative to Japan. According to data provided by the World Bank, the country is one of the countries with the highest cross-border payment fees, and the average cost of remittance is 10.5%.
In contrast, Canada, France, U.S, Italy and other countries, sending remittances need to pay a fee of about 5.92%. In addition, Ripple stated that with the surge in cross-border e-commerce and Filipino diaspora, Japan is experiencing two potential long-term growth trends.
Further data provided by the payment company shows that in 2020 alone, the Philippines sent more than 1.8 billion U.S. dollars. Therefore, they expect that the demand for cost-effective, high-frequency cross-border payments will increase. SBI Remit Representative Director Nobuo Ando said:
We see the use of blockchain technology not only to change the way payment transactions, but also to change our huge potential to manage our business by releasing trapped capital. The launch of ODL in Japan is just the beginning, and we look forward to continuing to advance the next frontier of financial innovation (…).
The payment solutions company recently released its second quarter XRP market report. Monica Long, general manager of RippleX, claimed that this period witnessed “the 4 highest XRP trading volume ever”, including new liquidity and other products.
At the time of writing, XRP trade The price is $0.70, the profit on the daily chart is 23%, and the profit for the past week is 13.1%. With more use cases using XRP, the token seems ready to increase its demand and adoption, thereby creating more potential catalysts for future appreciation.