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Institutional traders are bringing greater liquidity to Ripples XRP-powered cross-border payment product, On-Demand Liquidity (ODL), according to the companys vice president of global institutional markets.

Ripple VP Breanne Madigan says that XRP liquidity is the lifeblood of ODL, lowering the risk and cost of each cross-border transaction.

The continued growth of ODL has led to an expanding number of financial institutions, payment providers and market-makers to trade in XRP. The resulting increase in institutional trading volume has helped to bring further liquidity to XRP, specifically in ODL corridors in spite of the recent market turbulence surrounding the COVID pandemic.

Bitso, the largest crypto exchange in Mexico, has expanded its reach by utilizing ODL, dramatically increasing its XRP/peso volume.

It now also processes 2.5% of remittance transactions from the United States to Mexico, the third-largest remittance market in the world an achievement that the companys leadership chalks up to their partnership with Ripple.

According to Bitso head of finance Barbara Gonzalez Briseno, Ripples technology has enabled them to charge only a fraction of (traditional) wire transfer fees.

Madigan says that exchanges that arent ODL partners can also help increase XRP liquidity going forward.

But even non-ODL partner exchanges like Kraken or Coinbase will contribute to increased liquidity. As non-ODL partner exchanges continue to grow more mainstream, larger institutional traders will begin transacting in XRP, making order books including ODL order booksmore liquid.

Featured Image: Shutterstock/Irving Sandoval

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Ripple Executive Says Institutional Trading Boosting XRP Behind the Scenes, With Cryptocurrency Exchange Bitso Taking the Lead - The Daily Hodl