- Ripple’s On-Demand Liquidity payment corridor between the US and the Philippines has reached a new all-time high of over 6.1 million XRP.
- ODL continues to grow, with MoneyGram potentially becoming a key partner for further growth.
Since the beginning of the year, Ripple and its On-Demand Liquidity (ODL) software, which uses the XRP token to process cross-border payments, has seen phenomenal growth. ODL’s XRP volume is breaking new records almost weekly. Brad Garlinghouse, CEO of Ripple, promised last December that the company will achieve a 600 percent growth in transaction volume and a 30 to 40 percent growth in customer base.
This promise could be fulfilled if the growth continues. In recent weeks, the payment corridor between the USA and Mexico has repeatedly been the focus of attention. Ripple has entered into a partnership with the Mexican crypto exchange Bitso for this ODL payment corridor. Since December 2019, the XRP/MXN (Mexican Peso) pair has more than doubled its transaction volume. According to Daniel Vogel, CEO of Bitso, the exchange plans to handle 20% of weekly transfers between the United States and Mexico by the end of 2020.
Another ODL corridor currently experiencing strong growth is that between the US and the Philippines. The XRP volume on Coins.ph has again increased significantly in the last few days and has reached a new high of over 6 million XRP, as the Liquidity Index Bot on Twitter shows.
https://twitter.com/LiquidityB/status/1236547428012167168
However, compared to the Mexican payment corridor, the Philippines currently account for only half of this figure. The XRP/ MXN corridor recorded a volume of almost 14 million XRP on March 6th, with an all-time high of around 20.4 million XRP, reached in mid-February.
The total transaction volume of Ripple’s on-demand liquidity payment technology was $3.2 million yesterday, although the volume is highly volatile. On 05 March, this was 13.7 million US dollars. In mid-February, when ODL usage reached its peak, it was $16.8 million, according to the Utility Scan website.
MoneyGram as key partner for Ripple?
A key partner that could have a major impact on XRP’s transaction volume growth in the future is the global payment service provider MoneyGram. Most recently, MoneyGram announced that in December 2019, it recorded a 70% increase in online transactions compared to the previous year.
According to the payment service provider, On-Demand Liquidity has saved the company up to 75% in transaction fees. The two companies are working together to build a platform for international money transfers. Four new payment corridors for ODL are to be opened up before the end of the first quarter of 2020. In the long term, Ripple could thus also benefit from the strong growth of MoneyGram.
However, the effects on the XRP price cannot yet be measured at present. At the time of writing, the XRP price is moving in line with the current market sentiment and is down 4.2 percent.
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