Ripple has recently partnered up with a European online remittance service company, Azimo. The former will leverage Ripple’s On-Demand Liquidity (ODL) for remittance payments in the Philippines and plans to expand the services in other countries, as well. At the same time, the company’s legal battle against Bradley Sostack will continue.
Ripple Goes To Business With Azimo
Yesterday, Ripple announced its newest partnership with the U.K.-based digital money transfer service company. As of now, Azimo will utilize RippleNet’s ODL to send faster and cheaper cross-border payments to the Philippines. As per the announcement, the country is the 4th largest recipient of remittances from migrant workers.
To make sure that payments are sent quickly and received in local currencies on either side of a transaction, ODL uses Ripple’s native cryptocurrency, XRP. It bridges the two fiat currencies within a manner of seconds. Additionally, ODL could also decrease liquidity costs by up to 60% compared to traditional banking solutions.
Speaking on the matter was Richard Ambrose, CEO of Azimo. He pointed out ODL’s transaction speed as a primary benefit for the customers:
“We have been interested for a long time in the potential of digital assets like XRP to make cross-border payments better for customers. Ripple’s ODL solution has significantly reduced the cost and delivery time for cross-border transfers, and our customers are seeing the benefits.
As more banks and financial institutions use ODL, we believe it has the potential to replace current methods of foreign exchange trading and to reduce settlement time to close to zero.”
Both companies also noted that they plan to grow the service outside of the Philippines later this year.
According to Marcus Treacher, SVP of Customer Success at Ripple, aligning companies with the same vision is vital for success. He believes that partnering with firms like Azimo could positively impact society:
“It’s of the utmost importance to partner with companies who share the same vision and passion for challenging the way that money moves around the world today. Azimo is challenging the status quo by leveraging RippleNet with ODL to provide fast, low-cost, reliable, and easy payments for its customers worldwide.”
The company behind the third-largest cryptocurrency by market cap has already made other significant partnerships this year. One example came in early January when Ripple went into business with Thailand’s Oldest bank. Another one, a month later, tied it up with Egypt’s national bank.
Facing Legal Problems
In 2019, investor Bradley Sostack decided to sue Ripple for violating federal law. He alleged that the company was intentionally misleading investors and selling XRP as an unregistered security.
Ripple didn’t take the case lightly and quickly issued a motion to dismiss. However, a court document from yesterday indicated that Judge Hamilton granted only two of the firm’s claims.
The first one dismissed the allegation that Ripple violated any California state law. The second one disbands personal liability against Brad Garlinghouse, the company CEO.
Ripple claimed that even if XRP is a security, there should be no lawsuit since it was initially sold over three years ago. However, the company still sells its native cryptocurrency, and the Court didn’t grant Ripple’s motion.
According to the document, the firm hasn’t made a clear stance on whether or not XRP is indeed a security.