Simon McLoughlin, the CEO of Uphold, has shed light on the use of cryptocurrencies like XRP by some prominent finance giants for facilitating cross-border fund transfers.
Ripple’s ODL Network Transforming Cross-Border Payments
In a recent interview with Tony Edward of the Thinking Crypto podcast, McLoughlin reaffirmed Uphold’s role as a node in Ripple’s On-Demand Liquidity (ODL) network. This is Ripple’s cross-border payment solution.
He emphasized that Ripple’s ODL network enables the seamless movement of large sums of treasury funds for multinational corporations across different regions using crypto as the underlying transport layer.
The Uphold CEO highlighted the challenges facing big corporations in traditional cross-border transfers, including high costs and complexity. However, with Ripple’s ODL products, these hurdles are being addressed, offering a more efficient and cost-effective solution.
The Unnamed Companies Using XRP
Within Ripple’s ODL network, Uphold serves as an on- and off-ramp service provider for Ripple’s clients in the U.S., U.K., and European corridors. Uphold facilitates instant conversion of XRP assets into fiat currencies deposited in clients’ accounts on the exchange. Subsequently, it handles payouts to banks in the designated regions.
These well-known companies, McLoughlin revealed, move tens of millions of dollars leveraging XRP for cross-border transactions. He refrained from disclosing specific company names due to non-disclosure agreements. However, he emphasized that these are major corporations actively engaging in this method of fund transfer.
Industry analysts suggest that among the publicly known institutions utilizing XRP for intercontinental transfers via Ripple’s ODL network are Malaysia’s Tranglo and Japan’s SBI. Tranglo facilitates real-time transactions to countries like Singapore and the Philippines. SBI Remit in Japan on their part, utilizes XRP for transactions involving Vietnam, the Philippines, and Indonesia.
The revelation by McLoughlin supports the growing adoption of cryptocurrencies, particularly XRP, in global finance. The success of this move comes as traditional institutions are increasingly recognizing the benefits of blockchain technology for streamlining cross-border payments.