Speaking in a recent interview on The Jay Kim Show, the CEO said that the existing system of monetary transfers is largely outdated and a little too weighty and difficult. This is because the system revolves around the need for these institutions to consistently hold money in many bank accounts across the globe, at the same time.
“There’s $10 trillion pre-funded in accounts around the world, which is effectively the oil that is facilitating the engine that is correspondent banking. The oil has to be there or correspondent banking won’t work. Now, if we can reduce the amount of oil, that improves the efficiency of the global economy.”
Already, Ripple has partnered with MoneyGram and currently owns 9.95% of all of MoneyGram’s common stock with MoneyGram currently handling all its cross-border transactions into Mexico, using ODL.