The announcement was made by iRemit, a non-bank remittance service provider that uses Ripple‘s Open Decentralized Ledger to process remittances from Australia to the Philippines. The partnership will allow iRemit to tap into the $34 billion cross-border payment market in the Philippines, according to the release.
The year before, Novatti Group stated that it will be joining Ripple’s global payment network in order to use RippleNet’s On-Demand Liquidity (ODL) service, which would allow it to make cross-border payments using the digital currency XRP.
Ripple and Novatti’s efforts were first focused on the Australia-Philippines corridor, which they accomplished via a relationship with iRemit, the biggest Filipino-owned non-bank remittance service provider.
Remittances worth an estimated 34 billion USD arrive in the Philippines each year, but are currently subject to high fees, costly delays, and a complex web of intermediaries, all of which detract from the economic value of the remittances and harm individuals who rely on cross-border payments for their livelihood. Both Velo Labs and iRemit will supply the technology and settlement network to guarantee that these cross-border payments may be transmitted and received at a lower cost, quicker, and with more security than is now possible via traditional banking institutions.
Particularly noteworthy is that, by connecting with the Velo network, iRemit is now able to work directly with its trusted partners to settle transactions relatively instantaneously, eliminating the need for intermediate agents. iRemit’s users – including overseas Filipinos, migrant workers, as well as local companies and individuals – will benefit from the increased efficiency that comes from merging Velo Labs’ blockchain payment infrastructure with iRemit’s solid, domestic settlement network.
In the words of Mike Kennedy, CEO of Velo Labs, “Our partnership with iRemit is a direct reflection of Velo Labs’ core mission: to build a global, decentralized, and interoperable settlement network that provides fast, reliable, and secure cross-border payments.” “We are thrilled to be working with iRemit,” Kennedy said. While expanding our worldwide settlement network, we’re happy to engage with organizations like iRemit, who share our aim of empowering people who depend on cross-border payments to a greater extent.
The Velo Protocol serves as the backbone of the Velo Labs settlement network. This financial protocol refers to the practice of issuing digital credits that are tied to a local fiat currency in order to trade value between two parties that have mutual confidence in each other. All digital credits are backed by the Velo Labs utility token, the Velo Token, which ensures that there is always a 1:1 value between the digital credits and the underlying fiat money in circulation. It is possible for Velo Labs to offer an efficient manner of transacting value utilizing digital credits without the danger of volatility that is a worry with other digital asset protocols, thanks to this development.
It has been more than two decades since iRemit became the biggest Filipino-owned non-bank remittance service provider, serving the cross-border payment requirements of Filipinos living abroad. Customers are essential to the iRemit mission, and the company is committed to developing best business and technological practices to ensure that they continue to provide secure, reliable, and low-cost money transfer services so that the individuals who rely on these services can continue to prosper and contribute to the growth of the local economy over time.
With the use of blockchain technology, Velo Labs is developing a global settlement network that will enable financial institutions to make safe, near-instant cross-border payments at a cheap cost to both consumer and commercial clients worldwide. In order to provide access to efficient financial services, Velo Labs is focusing on creating crucial technologies that will allow for the frictionless movement of wealth across international boundaries.