Ripple’s XRP token is reportedly on track for supporting fast and cost-efficient cross-border transactions in Brazil, following the roll-out of RippleNet’s On-Demand Liquidity (ODL) with forex firm Travelex.

Specifically, the Digital payment network Ripple reportedly revealed details regarding the development of foreign exchange firm Travelex to take advantage of RippleNet’s ODL to support cross-border payments between enterprises via utilizing XRP. 

It further stated that Travelex Bank will be the pioneering bank to receive the greenlight from Brazil’s central bank to function solely in foreign exchange. 

Although other Latin American establishments like Banco Rendimento, Remessa Online, Frente Corretora, and Banco Topazio have already tapped into RippleNet services, the go-ahead given by the Central Bank of Brazil will mark the first milestone a Latin American bank has utilized ODL, per Ripple. 

Initially, Travelex will reportedly support these cross-border payments between Brazil and Mexico, with further plans down its pipeline to establish extra payment avenues in the area and with more use cases catering to enterprise demands.

The update surfaces in line with the Brazilian authority giving the greenlight to their first “Bitcoin law” in April this year, which specifically looks to form a regulatory framework regarding the way cryptocurrencies would be regulated.

Brazil is reportedly investing resources in introducing a central bank digital currency (CBDC). Nevertheless, the decision has been a controversial one, with Economist Fabio Araujo of the opinion that the CBDC “will be able to halt bank runs and impose other restrictions on citizens’ access to money.”

Head of Ripple – Brad Garlinghouse – reportedly claimed that Brazil’s adoption of a pro-crypto regulatory framework and increasing institutional interest in digital asset solutions prepped the nation up for the ODL.