Ripple has entered into a strategic partnership with Mercado Bitcoin, Latin America’s premier crypto exchange, aiming to revolutionize cross-border payment processes in Brazil. This initiative utilizes Ripple’s advanced end-to-end payment solution based on blockchain technology, as announced on October 3.
Restricted Availability for Consumers
Initially, this partnership will serve as a solution for institutional transactions connecting Mercado Bitcoin and its counterpart in Portugal. Ripple has indicated that the service will not be directly accessible to the wider retail customer base at this stage.
Future Enhancements
Ripple intends to broaden the application of its service to include corporate and retail clients in the future, facilitating transactions using Brazilian Reais.
Benefits of Ripple Payments
According to Silvio Pegado, Ripple’s Managing Director for Latin America, Ripple Payments provides significant advantages for crypto enterprises, such as:
- Enhanced operational efficiency
- Optimized liquidity management
- Increased profit margins through real-time settlement
Global Expansion Goals
Jordan Abud, Head of Banking at Mercado Bitcoin, highlighted that this collaboration will streamline international transactions, which aligns with the exchange’s objectives of global service expansion. He stated:
“Facilitating such operations with reduced costs and enriching our platform demonstrates our commitment to users while broadening our range of available products.”
Ripple’s Expansive Network
Ripple Payments boasts extensive global coverage, encompassing over 80 payout markets and representing more than 90% of daily foreign exchange operations. The company is backed by over $50 billion in processed transaction volume and maintains around 55 regulatory licenses and registrations worldwide.
The Rising Significance of Brazil
As Brazil manifests rapid growth within the crypto sector, Ripple recognizes the country’s increasing importance due to its forward-thinking regulatory approach and widespread adoption among citizens. Notably, Chainalysis has recently placed Brazil within the top 10 countries in its Global Adoption Index for 2024.
Ripple’s operations in Brazil began in 2019, and the company unveiled its inaugural crypto-based payment solution through Travelex Bank in 2022.
Ongoing Challenges in the U.S.
This expansion occurs amid legal challenges, as the U.S. Securities and Exchange Commission (SEC) has opted to appeal a favorable court ruling regarding Ripple. In response, Ripple CEO Brad Garlinghouse criticized the regulator’s decision, calling it “misguided and frustrating.”