- The Mexican crypto currency exchange Bitso recorded extremely strong growth for the on-demand liquidity payment corridor XRP/MXN in April.
- Bitso transferred more than 4.3 billion pesos in April 2020, the equivalent of approximately $179 million in XRP transfers.
Bitso is the largest crypto exchange in Mexico with a customer base of more than 750,000 users and has become one of Ripple’s key partners in recent months. The two companies began working together last April to open the payment corridor for On-Demand Liquidity (ODL) between Mexico and the United States. The Latin American market offers enormous potential with more than $30 billion in remittances annually.
In a recent update, Bitso’s CEO Daniel Vogel reported a sharp increase in transactions with On-Demand Liquidity and the XRP token. According to the tweet, Bitso processed more than 4.3 billion pesos in April 2020, the equivalent of approximately $179 million in XRP remittances. In the previous month, the figure was only about 2.67 billion pesos, or about 111.5 million USD. Via Twitter Vogel wrote:
„Bitso is growing exponentially in the processing of wire transfers through Ripple’s technology, XRP and Bitso. In April, we processed more than 4.3 billion pesos [~179 million USD] in remittances. Below is a table showing the remittances processed this year.
The Liquidity Index Bot on Twitter confirms Vogel’s figures and shows that an extreme increase in XRP/MXN transaction volume was seen, especially in mid-April. Since the last week of April, however, the volume has declined significantly and is now at about the same level as at the end of March.
Ripple and Bitso: The target is 20%.
Ripple and Bitso are pursuing an ambitious goal for the payment corridor between the USA and Mexico. Vogel stated in a podcast in February that his company plans to process 20% of all remittances to Mexico using Ripple’s On-Demand Liquidity. Already in February of this year, Vogel announced that Bitso had processed 5.3% of its weekly transaction volume between the two countries in the seventh week of the year. With the new figures, this share is therefore likely to have risen sharply once again.
In an interview in March 2020, Bárbara González Briseño, Bitso’s CFO, said that ODL is particularly beneficial to individuals and families who want to send money to Mexico for rent, food or education for their relatives:
ODL is amazing. The transaction is immediate, much cheaper and you know exactly when the recipient will receive it. Only a few months after starting working with Ripple, we were able to offer our partners a fully functional solution. Since July 2019, we have significantly increased both the number of users and the volume of transfers.
As reported, Bitso launched a new payment corridor between Mexico and Argentina in February to capture the Latin American market.