Ripple Targets More Partnerships with Brazilian Banks in 2020

Ripple Targets More Partnerships with Brazilian Banks in 2020

Ripple, the firm behind XRP, has its eyes on more partnerships in Brazil 2020, Reuters Brazil has reported.

Luiz Antonio Sacco, Ripple’s Managing Director of South America, told the media outlet that the company wants to net more banks and work with many other regulators in Brazil. The aim, Sacco told Reuters, is to fine-tune the remittances space in the country and make value movement faster and efficient.

The San Francisco-based payments technology firm is already one of the most successful blockchain companies around. However, its focus on more deals in the Latin America region could see the $10 billion firm soar even higher over the coming year.

Ripple stormed into Brazil in 2019, striking a series of partnerships that includes some of the country’s biggest banks. In the months that have followed its entry into Brazil, Ripple has formed high profile partnerships with banking industry leaders such as Banco Santander, Banco Bradesco, Rendimento.

The blockchain firm sees a lot of potential in the region, Sacco added. According to him, Brazil has witnessed major advances in banking regulations. The changes are set to facilitate financial transactions, with international transfers very key to the initiatives.

Ripple wants to take over from SWIFT

Currently, SWIFT handles the largest amount of cross-border payment transactions in Brazil. However, the platform is deemed too expensive and slow, taking up to 5 days for transactions to settle.

With Ripple’s blockchain technology, Sacco added, costs and time reduce significantly. Payments are near-instant and costs are 10 percent or less of what traditional banks charge.

Earlier this month, a Series C funding round saw Ripple get a valuation of $10 billion. Speaking after the $200 million funding round, Ripple CEO Brad Garlinghouse noted that their customers could increase 30-40 percent in 2020. Garlinghouse also expressed optimism about its transaction volume, forecasting a 600 percent spike over the same period.

At the time, Ripple reportedly had over 300 partnerships related to RippleNet, the company’s fast-growing global payments network.  Already more than 24 banks and financial institutions use Ripple’s “On-Demand Liquidity” solution, the firm said then. ODL is a payment technology that uses XRP.

The news saw XRP gain more than 4 percent on December 20. The sentiment was however weak and XRP quickly hit a succession of lower lows, flatlining around $0.19 since. XRP remains the third-largest cryptocurrency in terms of market capitalization log- behind BTC and Ether- and one of the top coins to look at in 2020.

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