Ripple, the San Francisco-based blockchain payments company, has announced a strategic partnership with FINCI, a Lithuania-based fintech firm, to enhance cross-border payment solutions using XRP.
Partnership Overview
In a recent collaboration, Ripple and FINCI will leverage RippleNet’s On-Demand Liquidity (ODL) service to streamline payments between Europe and Mexico. This eliminates the need for pre-funded overseas accounts, reducing costs and improving transaction efficiency.
👉 Discover how blockchain is revolutionizing global payments
Key Benefits of the Collaboration
- Cost Efficiency: ODL uses XRP as a bridge currency, minimizing liquidity costs.
- Speed: Transactions settle in seconds, compared to traditional multi-day processes.
- Scalability: Supports retail and B2B payments across 24+ markets, including Singapore and Poland.
Executive Insights
Mihails Kuznecovs, CEO of FINCI, shared:
"Our partnership with Ripple aligns with our mission to eliminate inefficiencies in international payments. The operational savings will allow us to reinvest in customer-centric innovations."
Sendi Young, Ripple’s Managing Director for Europe, added:
"ODL addresses longstanding challenges in cross-border payments—slow speeds, high costs, and unreliable infrastructure—by harnessing crypto liquidity."
Market Expansion Amid Regulatory Challenges
Despite ongoing legal disputes with the U.S. SEC regarding XRP’s regulatory status, Ripple continues expanding globally. This partnership marks its first ODL integration in Lithuania.
FAQs
Q1: How does ODL work?
A1: ODL uses XRP to facilitate instant currency conversions, bypassing traditional correspondent banking.
Q2: Which regions benefit from this partnership?
A2: Initially Europe-Mexico corridors, with plans to expand to Asia and other regions.
Q3: Is XRP’s regulatory status a risk for users?
A3: Ripple’s services operate outside U.S. jurisdiction, minimizing impact on international partners.