- Ripple’s on-demand liquidity payments solution ensures that multinational businesses can complete cross-border payments with speed, ease, and cost efficiency.
- The solution to unlock next-level treasury management further enhances operations with on-time global payments and high liquidity helping businesses expand into new markets.
Ripple is at the forefront of boosting business growth and expanding on an international level. In this age of globalization, executives involved with treasury management are faced with many challenges such as internal capital flows. For multinationals, this involves settling international payments which must be done on time and in most cases executed in local currency.
For example, a pharmaceutical company in the U.S. needs to ensure there’s capital flow in its research lab in the U.S. as well as its production plant in South America or India. The same company might be involved with other expenses such as buying raw materials in Europe or Asia. Treasury managers are faced with the challenge of ensuring all payments are made on time and in most cases executed in the local currency of the recipient.
Using traditional financial systems has proven to be expensive, tedious, and time-consuming; taking 3 to 5 days. In addition, some involve a complex financial system that involves pre-funding accounts in local currency, taxes, and other unnecessary fees and paperwork.
Ripple’s ODL – A Game Changer for Treasury Management
Ripple has identified the issue and offered a solution through its on-demand liquidity platform that helps customers such as corporates move money around the world with few restrictions. Without any relationship with local or international banks, treasury managers are able to ensure delivery of payments that are seamless, real-time, and cost-effective. Ripple’s ODL eliminates all the challenges involved in global settlements allowing multinational businesses to operate efficiently and to continue expanding into new markets.
The ODL utilizes Ripple’s XRP token, putting it in the middle of cross-border payments, thereby eliminating any third party as the token acts as the bridge between two foreign currencies. In addition, customers are able to tap into XRP liquidity.
The platform further introduces an unprecedented level of transparency and payment tracking. A blog from the Ripple team notes;
With real-time global settlement, ODL closes transactions in fractions of a second, while dramatically reducing both costs and the need to pre-fund foreign destination accounts. Increased transparency is also a key benefit for corporations and their customers, both for pricing and payment tracking. This enables better upfront visibility and tracing of all costs involved.
XRP Price Enjoys ODL Success
Since 2020, Ripple has sourced XRP from the open market to ensure there is a sufficient supply of XRP available for the growing ODL business. In 2021 and 2022, Ripple earned $2.7 billion in profit from “ODL-related sales” of XRP.
For XRP holders and investors, this is a real-world-use case that has proven successive and that will continue adding value to the token in the long run.
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