Ripple has made a significant impact on the blockchain and financial technology sectors through its innovative approach to cross-border payments and strategic global partnerships. As a fintech company leveraging blockchain technology, Ripple aims to provide faster, more cost-effective, and transparent international transaction solutions. Below, we explore some of its most influential collaborations and how they helped shape the industry.
Understanding Ripple and XRP
Ripple was launched in 2012 by Chris Larsen and Jed McCaleb as part of Ripple Labs. It is a blockchain-based payment platform that operates on a distributed ledger database known as the XRP Ledger. The platform also introduced its digital currency, XRP, designed to function as a bridge between different currencies or networks.
Ripple offers a modern alternative to traditional systems like SWIFT by enabling near-instant international settlements at a fraction of the cost. XRP plays a vital role in this ecosystem by facilitating liquidity and reducing the need for pre-funded accounts.
Major Ripple Collaborations
Partnership with MoneyGram
In June 2019, MoneyGram entered a strategic partnership with Ripple to utilize its xRapid product (now known as On-Demand Liquidity or ODL) for improving cross-border payment efficiency. This was a landmark agreement, bridging traditional finance with blockchain innovation.
Ripple invested $30 million in MoneyGram and became its primary partner for cross-border settlements using digital assets. Unfortunately, the partnership ended earlier than planned due to regulatory challenges from the SEC. MoneyGram paused the use of ODL and later terminated the collaboration amid legal uncertainties.
Banco Santander
Banco Santander, a global banking leader, partnered with Ripple to develop One Pay FX—a blockchain-based international payments service. Launched in 2020, this platform allowed faster, cheaper, and more transparent cross-border transactions across multiple currencies and countries.
Although Santander adopted Ripple’s technology, it hesitated to integrate XRP due to its limited liquidity in certain markets. Despite this, Santander remains one of Ripple’s most significant clients and a testament to the real-world applicability of RippleNet.
American Express Integration
American Express collaborated with Ripple in 2017 to establish one of the first blockchain-powered payment corridors between the US and the UK. Using RippleNet, the project enabled instant, non-card payments for American Express customers sending money to Santander UK accounts.
This partnership demonstrated how established financial corporations could adopt blockchain to improve service speed and security, encouraging further adoption across the sector.
Standard Chartered Bank
Standard Chartered, a major bank operating across Asia, Africa, and the Middle East, began using Ripple’s technology in 2016 to enhance its trade finance operations. The partnership aimed to reduce fraud, lower costs, and increase transaction transparency.
According to Gautam Jain, then head of digitization at Standard Chartered, applying blockchain to trade finance offered the potential for “significant rewards,” including real-time validation and secure documentation.
SBI Holdings
SBI Holdings, a Japanese financial services group, partnered with Ripple to launch RippleNet’s On-Demand Liquidity service in Japan. This allowed real-time, low-cost remittances between Japan and the Philippines using XRP for liquidity.
The collaboration expanded Ripple’s reach in Asia and showcased how digital assets could solve pre-funding challenges in cross-border transactions.
Amazon Web Services
Ripple partnered with Amazon Web Services (AWS) to host components of the XRP Ledger, providing developers with scalable and reliable infrastructure for blockchain applications. Although not a customer-facing partnership, AWS’s cloud capabilities supported Ripple’s technical expansion and stability.
Additionally, mutual clients like dLocal and Inter & Co. helped extend the indirect benefits of this collaboration, enhancing card payment and digital settlement services.
Bank of America
Bank of America has been exploring blockchain solutions with Ripple since 2016. Julie Harris, the bank’s head of global banking, publicly acknowledged Ripple’s potential in improving payment systems in 2020.
While full integration of ODL services is pending resolution of Ripple’s legal challenges with the SEC, this partnership holds promise for future innovation in institutional cross-border payments.
SEB
Swedish banking group SEB partnered with Ripple in 2016 to offer real-time payments between Stockholm and New York. This collaboration helped Ripple gain a foothold in European markets and illustrated the practical benefits of blockchain for corporate banking.
SEB’s involvement also increased Ripple’s visibility in Northern Europe and the Baltics, reinforcing its reputation as a leader in fintech solutions.
Frequently Asked Questions
What is Ripple’s main goal?
Ripple aims to enhance global payment systems through blockchain technology. Its solutions focus on reducing transaction times, lowering costs, and improving transparency for cross-border transfers. XRP serves as a bridge currency to facilitate these operations.
How does Ripple differ from Bitcoin?
Unlike Bitcoin, which is designed as a decentralized digital currency, Ripple is primarily a payment protocol. XRP is used within RippleNet to provide liquidity and enable fast settlements, whereas Bitcoin operates as a store of value and medium of exchange on its own network.
Which banks use Ripple?
Major financial institutions such as Banco Santander, Standard Chartered, and SBI Holdings use Ripple’s technology for cross-border payments and liquidity management. Many others are exploring integrations as regulatory clarity improves.
Is XRP a good investment?
XRP’s value is influenced by adoption rates, technological developments, and regulatory decisions. While it has shown resilience, potential investors should conduct thorough research and consider market volatility.
What is On-Demand Liquidity (ODL)?
ODL is Ripple’s liquidity solution that uses XRP to eliminate pre-funding in international transactions. It allows financial institutions to source liquidity in real-time, reducing operational costs and capital requirements.
Will more companies partner with Ripple in the future?
Given Ripple’s growing list of collaborations and recent legal advancements, it is likely that more companies will explore partnerships. The increasing demand for efficient payment solutions will further drive adoption.
Conclusion
Ripple’s strategic partnerships with leading financial and technology companies have played a crucial role in advancing blockchain adoption in global finance. By focusing on practical use cases like cross-border payments and liquidity management, Ripple has demonstrated how digital assets and distributed ledger technology can bring tangible benefits to traditional industries.
As the regulatory landscape evolves, Ripple is well-positioned to continue driving innovation. For those interested in the future of blockchain in finance, 👉 explore more strategies and developments in this rapidly evolving field.