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- Uphold revealed its partnership with Ripple Labs can generate $5B in annual transaction volume.
- The deal serves as a channel to promote the integration of traditional finance and crypto.
In a recent interview with the crypto media site Digital Perspectives, Simon Mcloughlin, CEO of Uphold, an American crypto exchange, revealed a key collaboration with Ripple Labs Inc that is set to transform the cross-border payments ecosystem.
Anticipated Volumes of the Uphold and Ripple Partnership
In terms of transaction volume expectations, Mcloughlin did not provide specific numbers but projected an initial annual volume of around $5 billion through the partnership. He also hinted at the potential for this figure to increase significantly, especially as regulatory clarity evolves in various parts of the world.
At the heart of this partnership is Ripple Payments, a key product from Ripple Labs. This product is specifically designed to simplify cross-border fund transfers for international companies. Leveraging XRP, the Ripple and Uphold partnership aims to address the longstanding challenges associated with the global movement of funds.
Uphold’s role in this collaboration is pivotal, with Mcloughlin revealing that the exchange will play a role as one of Ripple’s liquidity providers. The mechanics involve large companies opening pre-funded XRP accounts on Uphold through Ripple Payments.
Uphold’s primary responsibility is to convert the cryptocurrency into fiat currency and facilitate seamless payouts to banks. This approach streamlines the currency conversion process, offering a more efficient and cost-effective solution for businesses engaged in international transactions.
Expressing enthusiasm about the collaboration, Mcloughlin stated, “We are very excited to be involved in such an innovative solution with a great clear use case of crypto to solve a big mass market problem.”
The solution presented by Ripple and Uphold aims to revolutionize the outdated practices associated with cross-border payments, offering a streamlined and efficient alternative powered by blockchain technology.
Uphold’s Regulatory and Expansion Plans
Mcloughlin stressed Uphold’s dedication to functioning as a regulated organization, initially covering corridors in the United Kingdom, Europe, and the United States, with ambitions to extend into Brazil in the near future. This regulatory compliance push is an important feature of the cooperation, as it ensures a safe and transparent financial ecosystem for users.
Highlighting the challenges associated with cross-border transactions, Mcloughlin shared insights into Uphold’s recent licensing in Canada. He humorously recounted the struggles of funding a bank account in the country and lamented the persistence of archaic methods like physically transporting money. Such obstacles, according to Mcloughlin, should be a thing of the past in the modern era.
The Uphold and Ripple partnership stands out as a noteworthy advancement in leveraging blockchain and cryptocurrencies for practical, everyday applications. Meanwhile, Uphold’s Ascent platform has become a focal point for XRP activity, with the digital asset gaining significant traction.
Dr. Martin Hiesboeck, Head of Research at Uphold recently highlighted the escalating institutional interest in XRP. Uphold’s consistent coverage of XRP’s trading dominance underscores the long-term appeal of the coin among institutional investors.
