Ripple Targets The EUR/USD Payment Corridor: Analysis

Ripple targets the EUR/USD payment corridor but secretly trying to enter the busy and high volume. Ripple is a new age settlement platform that is mostly pinned on cost savings and speed but let’s read more about it in the following ripple xrp price news.

Ripple and Ripple Labs which is the issuer of XRP are two different entities and incorporating XRP by bank institutions seem like a challenge because of the many regulatory concerns. The banks are quite averse to risks and prefer to say by the side until there is more clarity. More than 300 banks that are connected to the RippleNET but there is a suite comprising the On-Demand liquidity known as x-Rapid, xCurrent and xVia but only a few leverage XRP and ODL. There are a lot of benefits as well of cost savings and instantaneous settlement procedures as pilot programs but the court cases and no clarity is definitely the problem. For the financial institutions that use the on-demand liquidity service, the partner exchanges such as Bitso and Bitstamp are the most critical.

The exchanges enable the successful implementation of the ODL which allows for a more smooth conversion of the funds from one currency to another in a matter of minutes and quite cheap with XRP as a bridge. Bitso uses the movement of funds between Mexico and the United States which opens up the corridor. Coins.ph enable free fund movement from the Philippines and the United States while Bitstamp enables the funds to move between Australia and the United States. The USD/AUD movement is possible by Flash FAX that also uses the New Payment Platform which simplifies the transaction between financial institutions in the country.

The AUD/USD pair is among the busiest and most active pairs in the FX market there are more speculations that Ripple has their eyes fixed on the fluid and deeper EUR/USD market. The pair commands 24% of all of the FX transactions in 2016 since the US and the EU are both the biggest economies in the world. As per the crypto platform, Ripple targets the payment corridor and a supporter even advised back in 2019:

 “In addition to the USD-MXN and USD-PHP ODL corridors, the company went into production with ODL payments originating from Australia into USD and PHP, and a new production ODL corridor from EUR-USD. Plans for additional corridors across APAC, EMEA and LATAM are in progress for 2020.”