According to a CoinDesk story, Ripple, a provider of digital asset structures, has teamed with Mercado Bitcoin, one of the biggest cryptocurrency exchanges in Brazil, in a strategic move to increase its footprint in Latin America, to offer a new international payment option.
This partnership, which is Ripple’s first business-focused endeavor in Brazil, attempts to make cross-border transactions utilizing Brazilian reals (BRL) easier for corporate and retail clients.
Mercado Bitcoin Partners With Ripple to Enable Quicker Payments
To enhance internal Treasury operations between Brazil and Portugal, Mercado Bitcoin uses Ripple’s service, which benefits businesses and consumers by enabling quicker and more effective payments. said in a statement by Ripple.
The collaboration between Mercado Bitcoin and Ripple is outlined to achieve several analytical goals. In a statement, CEO Silvio Pegado of Ripple for Latin America said, “Ripple Payments proposes unique capabilities that are essential to cryptocurrency businesses, permitting them to streamline operations, optimize liquidity, and ultimately enhance margins through real-time payment settlement.”
The collaboration with Ripple, according to Jordan Abud, banking director of Mercado Bitcoin, “lets Mercado Bitcoin take another step towards internationalizing its services.”
Brazilian Reais (BRL) may be seamlessly transferred between nations thanks to Ripple’s payment infrastructure, giving business and retail clients an easier way to handle international transactions.
This is especially advantageous for companies and people who have connections to Portugal and Brazil, where treasury procedures are frequently costly and time-consuming. Additionally, Mercado Bitcoin plans to enhance its treasury operations between Brazil and Portugal by utilizing Ripple’s network.
As a result, the exchange can reduce expenses and delays often related to cross-border payments and streamline liquidity management.
Ripple is accustomed to operating in Brazil. Cross-border transfers in emerging nations are often hampered by the inefficiencies of traditional banking systems, which is why Ripple’s platform works so effectively there. With its blockchain-based payment solutions, it makes international payments possible.
Ripple’s on-demand liquidity (ODL) solution helps to eliminate the need for pre-funded accounts by collaborating with financial institutions and cryptocurrency exchanges worldwide, significantly reducing the resistance involved in cross-border transactions.
In addition to enhancing the exchange’s competitiveness, the capacity to process cross-border payments will give users a useful service that satisfies their increasing need for quick and easy international money transfers.
Mercado Bitcoin will be able to maximize its operations’ liquidity with the help of Ripple’s platform, guaranteeing that it can more effectively manage its digital assets and raise the general effectiveness of its payment services.
SEC Files Notice of Appeal in Ripple Lawsuit
Meanwhile, on the legal front, the SEC filed an appeal of Judge Analisa Torres’ verdict in its case against Ripple. They contend that the XRP token offered for sale on open exchanges by SEC Ripple Labs does not fit the legal definition of a security, which would restrict the SEC’s regulatory power over XRP.
It was captured on October 4th in the US Court of Appeals for the Second Circuit’s PACER recording system. Ripple is still optimistic that it will win its appeal against the SEC, nevertheless.
Ripple stressed through its CEO, Garlinghouse, that it will win for the good of the business, the XRP community, and the cryptocurrency sector as a whole.
Final Thought
Ripple’s partnership with Mercado Bitcoin is a strategic move that underscores Ripple’s commitment to expanding its presence in Latin America by enhancing cross-border payment capabilities. This collaboration is particularly valuable for streamlining transactions between Brazil and Portugal, addressing inefficiencies in traditional banking systems.
Ripple’s blockchain-based solutions, particularly its on-demand liquidity (ODL), reduce the need for pre-funded accounts, providing businesses and retail customers with faster and more cost-effective international transactions. This partnership not only strengthens Mercado Bitcoin’s services but also enhances liquidity management, making it a significant advancement in the region’s cryptocurrency ecosystem.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.