In a significant milestone for blockchain-powered cross-border payments, Ripple and Mexican cryptocurrency exchange Bitso have facilitated $3.3 billion in remittances between the United States and Mexico using XRP as a bridge asset. This volume, reported for 2022, marks a major leap from the previous year and underscores the growing adoption of digital assets in real-world financial infrastructure.
The collaboration leverages Ripple’s On-Demand Liquidity (ODL) solution — a blockchain-based alternative to traditional correspondent banking that uses XRP to eliminate pre-funded nostro accounts and reduce settlement times from days to seconds. Bitso, one of Latin America’s largest crypto platforms, has been a key regional partner since Ripple expanded its ODL services into the region in 2019.
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Tripling Cross-Border Volume Through Crypto Innovation
According to an official statement from Bitso, the $3.3 billion in remittance volume represents a threefold increase compared to 2021. This surge reflects growing confidence among remittance providers and businesses in the reliability, speed, and cost-efficiency of crypto-enabled settlements.
This growth wasn’t accidental. It was driven by increasing demand for faster, cheaper alternatives to legacy systems like SWIFT, which often involve multiple intermediaries, high fees, and delays of up to several business days. By contrast, Ripple’s ODL system allows funds to be converted into XRP at the origin, transferred across borders almost instantly, and then settled into local fiat currency at the destination — all within seconds.
Bitso’s Cripto Para Empresas (Crypto for Business) service served as the primary vehicle for these transactions. Designed specifically for financial institutions and payment processors, this solution enables companies to integrate crypto-powered remittances into their existing workflows seamlessly. The majority of transactions were executed using XRP and stablecoins, both acting as efficient bridge assets to facilitate liquidity without exposure to prolonged price volatility.
Strategic Alliance Driving Real-World Utility
Ripple’s partnership with Bitso has proven to be one of its most impactful in Latin America. Since launching ODL operations in the region, the two companies have worked closely to modernize cross-border payment corridors — particularly the high-volume U.S.-Mexico route, which sees tens of billions of dollars in annual transfers.
Monica Long, President of Ripple, emphasized the significance of this achievement on social media:
“The US <> Mexico corridor sees 10s of billions of $ in payments every year (remittances, treasury, you name it), and last year [@bitso](https://twitter.com/Bitso) processed $3.3B of that through crypto with @Ripple and others. This is real-world utility.”
Her comments highlight a critical shift: digital assets are no longer speculative instruments alone but are now integral components of functional financial ecosystems.
Aaron Sears, Ripple’s Managing Director for the Americas, echoed this sentiment, stating:
“Our collaboration with Bitso allows us to continue to offer unprecedented cross-border payments in Mexico, a key region for our clients.”
Sears added that Ripple aims to expand this model across more countries in Latin America, enabling even more businesses to access instant, low-cost international settlements.
Expanding Access: WhatsApp-Powered Remittances
Beyond backend infrastructure improvements, Bitso has also focused on enhancing user experience and accessibility. In late 2022, it partnered with remittance provider Félix Pago to launch a crypto-powered remittance service via WhatsApp, allowing users in the U.S. to send money directly to recipients in Mexico through the popular messaging app.
This innovation combines the ubiquity of WhatsApp — widely used across Latin America — with the efficiency of blockchain settlements. Users initiate transfers via chat, and funds are settled using ODL technology powered by XRP. The result? Faster delivery, lower fees, and greater financial inclusion for underserved populations who rely heavily on remittances.
Such initiatives demonstrate how blockchain solutions can be integrated into everyday tools, making advanced financial services accessible without requiring technical expertise.
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Why XRP Matters in Cross-Border Payments
XRP plays a pivotal role in Ripple’s ODL framework due to several key advantages:
- Speed: Transactions settle in 3–5 seconds.
- Scalability: The XRP Ledger can handle up to 1,500 transactions per second.
- Low Cost: Average transaction fee is less than $0.01.
- Energy Efficiency: The network consumes minimal energy compared to proof-of-work blockchains.
These features make XRP uniquely suited for high-frequency, time-sensitive international transfers — especially in corridors like U.S.-Mexico, where millions of transactions occur annually.
Unlike stablecoins that require custodial reserves or complex issuance mechanisms, XRP operates as a native digital asset with built-in liquidity functions. When used as a bridge currency, it eliminates the need for pre-funding accounts in destination markets — a major pain point for traditional remittance operators.
FAQ: Understanding Ripple, Bitso & XRP in Remittances
Q: What is On-Demand Liquidity (ODL)?
A: ODL is Ripple’s blockchain-based solution that uses XRP to provide instant liquidity for cross-border payments. Instead of pre-funding foreign accounts, institutions convert fiat to XRP at origin and back to local currency at destination — reducing costs and capital lock-up.
Q: Why did Bitso choose XRP for remittances?
A: XRP offers fast settlement times (under 5 seconds), extremely low fees, and proven scalability. These traits make it ideal for high-volume remittance corridors like the U.S.-Mexico route.
Q: How does this benefit end users?
A: Faster transfers (often within minutes), lower fees compared to traditional services like Western Union or MoneyGram, and increased transparency through real-time tracking.
Q: Is this service available to individuals or only businesses?
A: While Bitso’s ODL integration primarily serves businesses and financial institutions through its Crypto for Business platform, end users benefit indirectly via improved speed and reduced costs when sending money through partner services like Félix Pago.
Q: Are there regulatory concerns with using crypto for remittances?
A: Bitso holds regulatory licenses in Mexico and complies with anti-money laundering (AML) and know-your-customer (KYC) standards. All transactions are monitored and reported per local requirements, ensuring compliance while leveraging blockchain innovation.
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Looking Ahead: The Future of Crypto Remittances in Latin America
The $3.3 billion milestone is not just a number — it’s a signal of transformation. As more financial institutions recognize the value of blockchain-based liquidity solutions, adoption is expected to accelerate across Latin America and beyond.
Ripple and Bitso plan to extend their collaboration into new markets and explore integrations with additional messaging platforms and banking partners. With remittance flows into Latin America exceeding $60 billion annually — and growing — the potential for further disruption remains vast.
For users, businesses, and economies alike, the fusion of crypto infrastructure with everyday financial needs promises a more inclusive, efficient, and transparent global financial system.
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XRP, Ripple, Bitso, On-Demand Liquidity (ODL), cross-border payments, remittances, blockchain payments, cryptocurrency remittances