XRP jumps 19% as Ripple announces ODL corridor in crypto-friendly Japan
As a part of its expansion in the APAC region, the company announces a new partnership.
US-based blockchain company Ripple, which operates the payment protocol and exchange network using XRP, announced a new partnership with Japan’s largest money transfer provider SBI Remit, mobile payments service Coins.ph and digital asset exchange platform SBI VC Trade to transform remittance payments from Japan to the Philippines.
As the company reported on Ripples’s first on-demand liquidity (ODL) service implementation in Japan, XRP rose 19% and is currently trading at around $0.70.
Regulatory clarity equals growth
According to the announcement, “the Philippines is the third-largest destination for remittances from Japan, with Japan (10.50 percent) having one of the highest remittance costs in the world – almost twice as much as the average of all the G8 countries (5.92 percent)” and Ripple’s latest partnership will enable a cheaper option by leveraging XRP to eliminate the pre-funding.
“This is Ripple’s first On-Demand Liquidity (ODL) service implementation in Japan, setting the stage to drive more adoption of crypto-enabled services in the region,” read the announcement that reconfirmed the company’s expansion agenda in the larger Asia-Pacific (APAC) region.
Announcing our newest On-Demand Liquidity corridor in (drumroll please…) JAPAN ??! https://t.co/xiHXnYjo6z
— Ripple (@Ripple) July 28, 2021
According to the company’s announcement, due to “growing ecommerce clout, increasingly mobile populations and rising clarity around cryptocurrency regulations, Asia Pacific is one of the fastest-growing regions for Ripple with transactions growing 130% year-over-year.”
Lack of regulatory clarity equals lawsuits
“We have been able to continue to grow the business in Asia and Japan because we’ve had regulatory clarity in those markets,” Ripple CEO Brad Garlinghouse told Reuters, while reflecting on the company’s standing in the US.
While not suffering any setbacks in the APAC region, the lawsuit filed by the US Securities and Exchange Commission (SEC) against the company last December, alleging that its sale of XRP was unregistered security offering worth more than $1.38 billion, only affected activity in the US.