Ripple’s remittance platform On Demand Liquidity (ODL) is witnessing an exponential drop in volume as the San Francisco payments startup changes its strategy in a Covid-19 world.
New statistics reveal that ODL volume peaked in May with a total of $316 million across four channels including Bitstamp to Bitso, Bitstamp to Coins.ph, BTCMarkets to Bitstamp, and BTCMarkets to Coins.ph. ODL volume took a 92% nosedive in June as the volume in all four channels amounted to a total of $25 million.
Ripple’s senior vice president of product management and corporate development Asheesh Birla recently predicted the drop in volume and says the payments firm is changing its strategy to adapt to a global economy ravaged by the coronavirus.
“We are continuing to focus on supporting low-value, high-frequency payments with ODL—though transaction volume may look different in this new world.
In particular, we are reducing emphasis on large treasury payments—which are traditionally used to fund businesses and services in the absence of real-time transfers—to support individual, low-value transactions, addressing the growing need in remittances and SME payments. This may reduce overall ODL transaction volumes.”
Even with the considerable drop in ODL volume, Ripple continues its push to launch ODL in new territories. Ripple vice president of customer success Marcus Treacher says the real-time payments startup is working on growing its remittance platform to service more corridors this year.
“We have established On Demand Liquidity corridors into Mexico, the Philippines, Australia and Europe, and we’re hoping to further this expansion by opening corridors to APAC and EMEA this year.”