Simon McLoughlin, CEO of Uphold, a prominent American exchange, has confirmed that major players in the finance industry are utilizing cryptocurrencies, specifically XRP, to facilitate global fund transfers. McLoughlin made this revelation during an interview with Tony Edward on the Thinking Crypto podcast, where he was asked to provide more details about the Ripple and Uphold partnership that was announced a few months ago.
In response, McLoughlin highlighted that Uphold serves as a node in Ripple’s ODL network, which is Ripple’s cross-border payment solution that utilizes cryptocurrencies like XRP. He emphasized that Ripple ODL streamlines the movement of significant amounts of treasury for multinational companies across different regions by using cryptocurrencies as the transport layer.
McLoughlin emphasized that large companies that engage in money transfers often face high costs and complications when dealing with cross-border transactions. However, Ripple’s ODL product offers a cheaper and faster alternative to mitigate these challenges.
Within Ripple’s ODL network, Uphold acts as the on and off-ramp service for Ripple’s clients in the United States, United Kingdom, and European corridors. McLoughlin explained that Uphold plays a crucial role in instantly converting the XRP assets in clients’ accounts on the exchange into fiat currency and then facilitating payouts to banks in the US, UK, and Europe. Essentially, Uphold enables users in these regions to convert cryptocurrencies into local currencies.
Notably, McLoughlin revealed that Uphold’s position provides them with valuable insights into Ripple’s payment network, allowing them to witness well-known companies leveraging XRP for cross-border transactions involving tens of millions of dollars. However, due to non-disclosure agreements, McLoughlin refrained from disclosing the specific companies using Ripple’s ODL service. Nonetheless, he emphasized that these companies are recognized names in the finance industry, indicating that this practice is not limited to fringe activities.
While McLoughlin couldn’t disclose Ripple’s clients in the US and UK, it is publicly known that institutions such as Tranglo in Malaysia and SBI in Japan utilize XRP for intercontinental transfers via ODL. For example, Tranglo employs XRP for real-time transactions to countries like Singapore and the Philippines, while SBI Remit utilizes XRP for transactions involving Vietnam, the Philippines, and Indonesia.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The author’s opinions expressed herein may not necessarily reflect those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, as The Crypto Basic is not liable for any financial losses that may occur.
