Blockchain
Ripple Managing Director is optimistic about blockchain’s transformative power in cross-border payments; highlights pain points and solutions.
Aaron Sears, Ripple’s Managing Director of the Americas, is optimistic about the transformative power of blockchain and digital asset technology in financial services, particularly in cross-border payments.
In an interview with PYMNTS, Sears highlighted the pain points of traditional global payments, including speed, reliability, transparency and cost. However, Sears believes that digital assets and blockchain can address these challenges and streamline cross-border payments.
.@Ripple on how blockchain and digital assets can free up capital tied up in cross-border treasury flows. Click through to PYMNTS for the rest of our sit-down with Aaron Sears: https://t.co/Absjw9lmn7 #Ripple #XRP pic.twitter.com/cGe51hPAzB
— PYMNTS (@pymnts) June 9, 2023
Legacy solution can be frustrating
Sears explained that the current correspondent banking system is fragmented and inefficient, leading to slow, unreliable and expensive cross-border payments. These inefficiencies have a major impact on financial leaders’ decision-making.
In addition, Sears highlighted the burden of pre-funded accounts and the complexities of traditional cross-border payments, such as wire transfer closing times, holidays and bank hours. He suggested that businesses use a robust, compliant and secure all-in-one cross-border payment solution to overcome these challenges.
Blockchain and crypto-enabled payments offer real-time settlement and payout, enabling instant value transfer. The general manager of Ripple American highlighted the 24/7/365 availability of cross-border payments enabled by blockchain and crypto.
“We have seen increasing regulatory clarity in many different markets around the world. In step with that, we’ve seen institutional adoption [of crypto] going up, which will encourage additional waves of institutional clients,” he concluded.
Ripple solution in the Mexican American market
In a related development around cross-border payments, a major partner of Ripple’s on-demand liquidity service processed as much as $3.3 billion by 2022 as reported Through The crypto base. Part of this volume was facilitated using ODL.
Notably, Bitso, a Mexican crypto exchange, facilitated $3.3 billion in remittances between the United States and Mexico in 2022. Notably, the figure more than doubled from the previous year.
Commenting on the achievement, Ripple’s CEO for the Americas highlighted the importance of Ripple’s partnership with Bitso in revolutionizing cross-border payments in Mexico, a critical region for Ripple’s customers.