Massive ODL expansion in Asia set for 2021 – SBI Ripple Asia CEO Adam Traidman
|- On-Demand Liquidity trials have already begun with some Asian companies but the major rollout is set for 2021.
- ODL allows companies to create liquidity in new markets while keeping transaction costs at a minimum.
- Asia is said to be more receptive to new payment methods compared to regions such as the US.
Asia is the next destination for Ripple’s On-Demand Liquidity according to Adam Traidman, the CEO of SBI Ripple Asia. Traidman was speaking in an interview on the YouTube channel, Thinking Crypto. SBI Ripple Asia is a subsidiary firm of the Japanese-based financial giant, SBI Holdings.
Traidman talked about Ripple’s plans to launch new payment corridors in the Asian region. Already, “limited trial and pilot projects’ have commenced for different corridors but the main expansion is scheduled for 2021.
I expect that probably later this year, and into next year, things are going to move into wider spread production.
I expect remittance companies that were restricted in growth because they have pre-funding requirements, they have a lot of capital—they’re going to have a lot more flexibility.
ODL offers a cheaper solution for sending money internationally especially for countries that have high transaction fees. In the United States, Ripple’s solution is unlikely to take off immediately but it’s a great solution for Japan and other Asian countries.
In Japan, sending money is very expensive. In the U.S., it’s not as expensive. That’s why you don’t see Ripple replacing ACH [Automated Clearing House] in the U.S. right now. The [ODL] technology is much more suited for cross-border payments where the costs are a lot higher [..] Ripple’s tech is great in Asia and very successful in South America.
The ODL network has in the recent past recorded massive growth in volume. MoneyGram, Ripple’s strategic partner remains optimistic that the platform will gain more traction over the years. In other regions, ODL network volumes tripled in the first quarter of 2020 while the USD transferred using the network grew by 294%.
The Asian region is a preferred destination because it “happens to be more progressive when it comes to all sorts of payment rails” according to Traidman.
Read more: Ripple Price Analysis: XRP/USD motionless under $0.19 as consolidation takes point
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