The SVP of product management of Ripple, Asheesh Birla has announced yesterday on Twitter that Ripple has invested into the Bitso, which is a Mexican Exchange. Bitso is the largest exchange in Latin America, but Birla didn’t reveal the investment amount that has been made. Also, Birla will be joining the board of directors in Bitso.
— Ripple (@Ripple) October 14, 2019
— Asheesh Birla (@ashgoblue) October 14, 2019
Bitso was launched in 2014 and it was the first-ever virtual currency exchange in Mexico. Bitso’s main target is to offer financial services for the banks and non-banking platforms to handle with cryptocurrency and blockchain technology. In his blog, Birla also mentioned that the exchange firm has a users base of around 750,000 and they are expanding it. Also, Bitso gets its DLT License two months back by the Gibraltar Financial Services Commission (GFSC) and it became the first exchange of Latin America to get this.
Birla will assist Bitso in to extend their roots in the new areas like Argentina and Brazil, he will also help to build a stronger partnership between Ripple and Bitso. Birla stated,
“Ripple has always been committed to growing a strong, healthy XRP ecosystem to enable faster, cheaper global payments.”
He further added,
“This partnership will help further the growth of the ecosystem by offering greater liquidity for payments.”
The CEO and co-founder of Bitso, Daniel Vogel stated,
“The region is ready for disruption and we want to be ones to do so by radically advancing financial inclusion for everyone.”
As one of the major concerns of the Ripple is to maintain the liquidity of Ripple currency and with a lot of the cryptocurrency, XRP is going to Mexico. However, it needs to exchange in Mexican Pesos and that’s why liquidity is important.
Ripple also found a solution for it, which is On-demand liquidity or ODL offering and Bitso is an important partner in Mexico that offers this to Ripple. Birla said,
“Bitso currently plays a vital role is ODL by providing critical liquidity for payments within the US <> Mexico corridor. Earlier this year Ripple launched ODL capabilities with MoneyGram into Mexico, with Bitso as the key exchange partner.”