Travelex is registered and approved by the Central Bank of Brazil to conduct foreign exchange transactions exclusively. It leverages ODL, Ripple’s on-demand liquidity solution, which uses XRP—a digital asset designed for payments. This allows customers to send money internationally in a quick manner with relatively low transaction costs and without needing pre-funded capital in the destination market.

According to Travelex, Brazil is crucial for Ripple given its significance as a gateway to business in Latin America, its openness towards cryptocurrencies, and nationwide initiatives supporting fintech innovation. Therefore, Ripple’s focus is on creating solutions that offer practical utility by collaborating with Travelex Bank to enhance money transfer efficiency for both individual and corporate customers across Brazil.

Brazil has taken an active stance in regulating the crypto industry through progressive legislation aimed at consumer protection while fostering innovation. This has spurred rapid growth in cryptocurrency adoption, as seen in 2021 when both institutional investment and public interest surged, as Ripple notes.

Scope of the Agreement

Travelex Bank is dedicated to simplifying international financial services for its customers. As a fully digital and personal bank, it offers remittance, international payments, ATMs, multi-currency prepaid cards, and other solutions. With a focus on electronic foreign exchange transactions, Travelex embraces technology to provide banking services across various sectors.

Travelling Bank aimed at improving the customer experience for its partners who faced challenges due to limited capital for pre-funding. By utilizing ODL, Travelex can now offer faster settlement and 24/7 liquidity access, aiding their growth and expansion. At launch, Travelex will support remittances between Mexico and Brazil, with plans to expand to more routes including internal treasury management and small and medium-sized enterprise payments.

Ripple’s Global Ventures

This summer proved to be particularly active for Ripple as it assisted Colombia in integrating land titles onto the blockchain to address issues of unequal land distribution leading to conflicts. The project was a collaboration between Ripple and Peersyst Technology, aiming to permanently store and verify property titles on Ripple’s Ledge, its public blockchain, thus reducing bureaucratic processes.

Ripple also collaborated with FOMO Pay, a Singapore-based payments service provider, using On-Demand Liquidity (ODL) for cross-border treasury management. ODL utilized XRP to facilitate the bridging between two fiat currencies, enhancing efficiency in international financial operations.