U.S.-Mexico remittances are tilting towards the crypto space. This comes as Ripple indicates that XRP transfers account for about 10% of these cash flows.
U.S.-Mexico remittance has achieved a new milestone. Ripple‘s XRP now accounts for about 10% of the remittance cash flows to Mexico from the U.S. The head of developer relations Warren Anderson indicated this at the virtual reimagine 2020 conference. Those flows went through Ripple’s ODL platform.
“So US-Mexico is one of the largest remittance corridors in the world, and Ripple was seeing upwards of 10% of that flow actually going through our production network.”
At the time of filing this report, Ripple’s XRP prices were at $0.1942 (+0.27%).
U.S.-Mexico Remittance Flows Tilt towards Crypto Space, XRP Plays Its Role
Ripple’s foray into U.S.-Mexico remittance functions on a partnership between Ripple and Mexico-based Bitso. The Cryptocurrency exchange and Ripple entered into a partnership in March 2018. The exchange said that it was processing 2.5% of all inflows.
Ripple CEO indicated in April that 7.5% of US-Peso transactions occurred in February. These transactions were worth about $54 million.
Anderson also indicated that the development arm Xpring had moved in another direction. He indicated that the former investment-driven platform is now focused on blockchain development.
“Xpring team is about 90% engineering. So we have about 45-50 developers that work on open-source software full time. A lot of people have said, ‘Oh, Xpring’s kind of like the open-source team at Ripple,’ and I think that’s actually a pretty good analogy.”
This brings all sorts of functionality to the Ripple protocol. Other functionalities are going to be possible soon.
XRP Options on Binance
In a related development, XRP is available for options trading on Binance. The world’s largest cryptocurrency exchange indicated this in a tweet. Ethereum was also added for options trading. The cryptocurrency exchange indicated this in an article.
This will allow users to trade XRP on the Binance platform using options contracts rather than futures. Options give the owner the right but not the obligation to buy (or sell) securities or assets. If the option goes in the direction of the owner’s choice, a profit is made. If it goes against the user, a premium fee is charged. This allows for the maximization of user’s funds while the profit can be made optimally.
Users on the Binance platform will now be able to trade XRP, Bitcoin (BTC), and Ethereum (ETH) using Options contracts rather than just futures. The options functionality will be available on its mobile apps for both Android and iOS.
The premium for trading will be deducted from users’ futures balances after the options have expired.
This move further expands the liquidity offerings that are available for XRP. The token has had issues before now. Many members of the crypto-space have considered the escrow wallet issuance of tokens to be manipulation.
Ripple Labs CEO Brad Garlinghouse has time and again denied such accusations. The great thing about the Ripple protocol is that it introduces Decentralized Ledger Technology (DLT) to the financial community.
XRP has is the darling of the financial space. It’s underlying Ripple Protocol Consensus Algorithm (RPCA) has allowed for value transfers. Such transfers have been nearly instant.
They have been secure as well. All the nodes across the Ripple ledger concede to a transfer within record time. And the transfers are cheaper than traditional remittance services as well.
Ripple could easily become one of those DLT’s that will form the foundation of the new financial ecosystem.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.