- Mexican and Australian corridor liquidity surpasses an all-time high.
- European corridor liquidity is surging.
Fintech giant Ripple’s on-demand-liquidity (ODL) platform has seen an increase in usage and adoption in 2020. Ripple’s ODL platform enables institutions to source liquidity nearly instantly and at a cost-effective price.
The XRP Liquidity Index bot monitors liquidity in four of Ripple’s ODL corridors. Three of the four corridors have seen a recent liquidity surge per the index, with two reaching new highs today.
XRP liquidity has been setting new highs throughout 2020, pointing to an increase in ODL usage.
The Mexico corridor is one of Ripple’s most popular ODL corridors by volume. Subsequently, the Mexico corridor has the greatest liquidity according to the Liquidity Index Bot.
The corridor has reached all-time liquidity high of 33,537,077. Furthermore, liquidity in the corridor has remained relatively stable compared to its last all-time high in early April.
ODL volume in the Mexico corridor is driven by the partnership with MoneyGram and Bitso. Last year, Ripple launched its ODL services in Mexico with Bitso as the exchange partner. The MoneyGram and Bitso partnership has been beneficial for ODL adoption and volume in Latin America. In addition to the strategic partnership, coronavirus’ digital dependency may also be responsible for the exponential ODL volume growth.
The European corridor saw a high of 35,746,047 in early April. Following a liquidity drop, liquidity in the European corridor is increasing at a rapid pace.
The Europe corridor is the latest addition to the Liquidity Index Bot. Despite being the second-largest ODL corridor following Mexico, the European corridor has only recently been brought to attention. This is likely due to the European corridor already having established players and thus little need for Ripple’s ODL services.
However, as noted by Ripple CTO David Schwartz institutions in already liquid corridors can take advantage of Ripple’s decentralized value proposition. This allows institutions to utilize Ripple’s services during bank off-hours and holidays, creating a unique value proposition.
The Australian corridor is the third-largest ODL corridor per the index. The index has also reached an all-time high today.
BTCMarkets is one of Ripple’s largest ODL partners utilizing the Australian corridor. In a recent interview, Caroline Bowler (CEO of BTCMarkets) noted the ongoing ODL growth they were seeing.
…..what we’re seeing with ODL, just to give you this as context, I think we’re averaging about a 5% week-over-week growth since January in terms of volume coming through our exchange on XRP. And that’s a combination of both the ODL traffic and interested people in XRP.Caroline Bowler (BTCMarkets CEO)
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