Ripple To Add New ODL Corridors This Year; Existing ODL Corridors Witness Plummet
Ripple’s Senior Vice President of Product endorses RippleNet’s On-Demand Liquidity service while stressing on the need for digitalization. However, XRP’s liquidity index with prominent corridors takes a hit.
Ripple’s ODL Going Downhill?
While Ripple has been trying to make advancements with regard to its ODL service, the liquidity index of XRP on different corridors seems to be plummeting. Just a few days ago the liquidity index for the pair XRP/AUD (Australian Dollar) hit an all-time high of 16.089 million. However, the latest charts have been displaying a significantly low liquidity index
At the time of writing, the liquidity index for XRP/AUD was at a low of 6.457 million. Similar trends were witnessed within other corridors including EUR, PHP as well as MXN. The liquidity index of the pair XRP/PHP recorded the lowest of 4.038 million.
While the existing ODL corridors have been moving in a downward trajectory, Ripple is reportedly “on track” to inaugurate new ODL corridors this year.
RippleNet’s ODL Service Receives Endorsement
The CEO of the company, Brad Garlinghouse was in a meeting with the President of the Brazilian Central Bank through video conference. Even though the details about the meeting were undisclosed, several from the community believed that the Ripple was further expanding into the Latin American region.
Just yesterday, Asheesh Birla, the company’s Senior Vice President of Product published a blog post highlighting the requirement of the digitalization of cash as well as RippleNet’s On-Demand Liquidity (ODL) service.
Covid-19 has definitely caused immense damage across the world, Birla highlights the need for digitalization of cash now more than ever. International payment providers like MoneyGram International as well as Western Union have been witnessing a significant surge in digital payments and electronic transactions. With financial institutions, transactions can be costly and delayed, suggests Birla. However, Ripple’s ODL service could reportedly help in the same. The post read,
“Sending cash payments requires more working capital and resources than digital payments. Because the digital asset XRP can be sent directly, instantly and cost effectively, without needing a central intermediary, XRP eliminates the additional costs associated with sending cash payments and can be used as an alternative to pre-funding.”
The platform claims to aid transactions of a lower value as opposed to “large treasury payment” while addressing the requirement for SME payments.
Birla also tweeted about the same elaborating on the fact that the use of ODL is however not limited to the aforementioned factors. Since the current situation calls for the need of supporting smaller transactions, the Ripple platform chooses to serve the market need via a specific use case.