With approximately 70% of financial institutions and 59% of consumers in Europe interested in crypto-enabled payments, the partnership sees Lemonway using RippleNet’s ODL, which uses XRP for crypto payments, to add to its treasury payments processes. Swedish money transfer provider Xbaht will facilitate money transfers between Sweden and Thailand.
Ripple’s ODL enables low-cost and instant cross-border payments without the need for pre-funded accounts, as the company says. According to Ripple’s press release, the partnerships will eliminate the need for Lemonway and Xbaht to pre-fund their accounts when making transactions abroad. The ODL solution will help address cross-border payment problems related to speed, reliability, and excessive transfer cost.
Lemonway COO Jeremy Ricordeau commented that using Ripple’s ODL will allow the company to free up some funds which can be passed as benefits to their clients.
Ripple’s vision is to offer payment infrastructures aimed at offering cheaper and faster cross-border payments. So far, Ripple’s ODL is available in 25 markets including Singapore, Malaysia, Poland, and Thailand. Earlier in August 2022, Ripple teamed up with payment provider Travelex to offer its ODL solution in Brazil.
The statement at the time was that Brazil is a key market for Ripple given its importance as an anchor to business in Latin America, its openness to crypto and country-wide initiatives that promote fintech innovation. Therefore, Ripple is focused on building solutions that deliver utility and the reason why they collaborate with Travelex Bank is to help move money more efficiently for the benefit of its customers across Brazil.
Ripple also has a private XRP ledger optimised for deploying central bank digital currencies (CBDC). In November 2021, Ripple worked with the Republic of Palau to develop its government-backed USD CBDC.
Starting in October 2022, Ripple alongside three other participants of the Digital Dollar Project will explore the possibility of developing a digital USD that will be used for instant cross-border payments.
Other crypto expansions in Europe
In a parallel move, US crypto player Gemini has fully launched its crypto exchange and custody services in Ireland. The company, which has operated out of London for its European expansion plans for several years, offers both individuals and institutions access to buy and sell more than 100 cryptocurrencies, DeFi tokens.
Its launch in Ireland comes after recent approval for registration by the Central Bank of Ireland. This allows the cryptocurrency platform to offer crypto services to the Irish market, including trading in cryptocurrencies in EUR and GBP.