According to CEO Brad Garlinghouse, Ripple is looking to completely change the way cross border payments are currently handled and wants to be the main change that will disrupt the entire banking industry.
Speaking in a recent interview on The Jay Kim Show, the CEO said that the existing system of monetary transfers is largely outdated and a little too weighty and difficult. This is because the system revolves around the need for these institutions to consistently hold money in many bank accounts across the globe, at the same time.
“There’s $10 trillion pre-funded in accounts around the world, which is effectively the oil that is facilitating the engine that is correspondent banking. The oil has to be there or correspondent banking won’t work. Now, if we can reduce the amount of oil, that improves the efficiency of the global economy.”
Ripple currently has more than 300 financial institutions in its RippleNet that use the company’s offerings to easily settle these cross-border payments a lot more effectively. One of these offerings is called On-Demand Liquidity (ODL). Formerly referred to as xRapid, ODL currently allows more than a few firms to easily move money around through blockchain technology, using XRP as a bridge between any two fiats.
Already, Ripple has partnered with MoneyGram and currently owns 9.95% of all of MoneyGram’s common stock with MoneyGram currently handling all its cross-border transactions into Mexico, using ODL.
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