The SEC's lawsuit against Ripple Labs has now been extended until 2022, putting the San Francisco-based blockchain company in hot water at home.
Overseas, on the other hand, is a different story. Ripple is making headlines after establishing connections with Middle Eastern fintech stakeholders.
Friends from the opposing side
Ripple has announced a partnership with international fintech company Pyypl to launch the first On-Demand Liquidity (ODL) services in the Middle East using XRP.
Last year, the UAE and Saudi Arabia sent approximately $78 billion in remittances, according to Ripple. Furthermore, two of the world's top three remittance corridors are located in the MENA region. Ripple and Pyypl's project will begin in the United Arab Emirates.
A blog post by Team Ripple revealed,
“Ripple was the first enterprise company to leverage crypto to tackle the trillion-dollar challenges with cross-border payments. By using ODL, financial institutions and Small- and Medium-Sized Enterprises (SMEs) can now leverage previously trapped, pre-funded capital to grow and scale their business.”
However, it is worth noting that Ripple's XRP will not be held in the UAE. The country's United Arab Emirates dirham [AED] will also not be included in the payment flow.
Meanwhile, Pyypl stated that its goal is to reduce users' reliance on "expensive pre-funded accounts" required for cross-border remittances in the region.
Co-Founder and CEO of Pyypl, Antti Arponen, said,
“We’re excited to be Ripple’s first partner of choice to bring the deployment of ODL to the Middle East. This enables our ever-increasing number of users to deliver remittances instantly and cost-effectively. We’ve also reduced our inefficient use of capital through ODL, and look forward to an exciting rollout of its capabilities across the region.”
It's also worth noting that Pyypl is licensed by the Financial Services Regulatory Authority of the Abu Dhabi Global Market [ADGM].
Ripple will establish a regional headquarters in Dubai in 2020, deepening its presence in the Middle East. Qatar National Bank is another of its clients in the region.
For its part, the American blockchain company stated,
“All of this is driving a record year for Ripple in MENA, with RippleNet already logging four times the transaction volume year-to-date versus all of 2020.”
Considering the UAE
Ripple has already established itself in the United Arab Emirates. The country's Al Ansari foreign exchange announced a partnership with Ripple a few days ago. This was done with the assistance of another money transfer company, MoneyMatch, to enable same-day remittances across borders in Malaysian ringgit [MYR].