In a recent interview with Digital Perspectives on November 23, 2023, the CEO of Uphold, J.P. Mcloughlin, shared insightful details about the company’s collaboration with Ripple, a renowned player in blockchain-based global payments. This partnership, first announced in October, is poised to revolutionize cross-border payments by leveraging Ripple’s cryptocurrency, XRP.
Mcloughlin elaborated on the pivotal role of Uphold in the Ripple network, highlighting its function as one of Ripple’s liquidity providers. He noted the significance of Ripple’s payment product, “Ripple Payments,” in facilitating swift international money transfers for global businesses. This system uses XRP to overcome the limitations inherent in traditional monetary systems for international fund transfers.
A vital aspect of this collaboration involves businesses creating Uphold accounts funded with XRP provided by Ripple. Uphold’s primary responsibility in this ecosystem is facilitating seamless bank payouts by converting cryptocurrency into fiat currency. Although Mcloughlin refrained from disclosing specific figures, he projected that this alliance would initially handle an annual transaction volume of around $5 billion, which could significantly increase depending on global regulatory developments.
When and Where Will Ripple Payments Operate?
Initially, Uphold will operate within regulated corridors in the US, UK, and Europe, with plans to expand into Brazil the following year. Mcloughlin also highlighted Uphold’s recent licensing in Canada, using it as an example to critique the inefficiencies and outdated practices prevalent in traditional financial systems. He expressed his enthusiasm about being part of a solution that uses cryptocurrency to address a widespread market issue, emphasizing the need to move beyond archaic methods of physically transferring money in today’s digital age.
