- Within the crypto community, rumors are spreading that Binance may have partnered with Ripple to support the On-Demand Liquidity (ODL) technology.
- What is the truth about the rumors and what are the facts in favor of a cooperation between the two companies?
In recent days, there has been a rumour in the crypto community that Binance has entered into a cooperation with Ripple. What is striking about it is that Binance could use Ripple’s On-Demand Liquidity (ODL) technology, which uses the XRP token as a bridge currency to provide liquidity to financial companies worldwide. If the rumor turns out to be true, ODL’s growth could be significantly accelerated and the XRP price could benefit from it.
What is behind the rumor of the Binance and Ripple partnership?
The rumour began on 6th December when Twitter user CryptoCrusaderX discovered that XRP’s Utility Scanner had recorded a transaction with the payment processor “Binance_RUB”. Crypto and XRP enthusiasts therefore believe that Binance could soon become an On-Demand Liquidity (ODL) exchange.
Whether the transaction was just a one-off test or a long-term partnership is planned remains unclear. In fact, Ripple utilizes crypto exchanges in various countries around the world as a gateway to send XRP. The prerequisite for this is that the exchange accepts fiat currencies. Thereby the sender can buy the corresponding value in XRP at an exchange and send it to another country worldwide, where the value of the transaction is immediately converted back into the local currency.
With Bittrex, Bitso, Coins.ph and Bitstamp, Ripple has already won renowned crypto exchanges as partners to increase ODL’s liquidity. Binance would be another suitable partner for Ripple and its technology. With Binance, Ripple could leverage one of the world’s largest and most liquid exchanges to process cross-border payments.
CZ has already expressed a positive opinion about XRP
The rumour is also supported by the fact that Binance CEO Changpeng Zhao (“CZ”) already made a positive statement about the cryptocurrency XRP in February 2019. He explained in an Ask-me-anything (AMA) that Binance could “definitely” work with Ripple in the future to support the company’s XRP-based cross-border payment solution called On-Demand Liquidity (ODL).
We’re focused on launching more features right now, so we are working with a number of other partners. With xRapid, there’s nothing going on right now, but in the future we’ll definitely want to add them as a partner.
Another argument used by XRP enthusiasts is that Binance already announced support for the Russian Ruble (RUB) on December 2nd. On this day, Binance launched the trading of the Ruble for the trading pairs BNB/RUB, BTC/RUB, ETH/RUB and XRP/RUB. The transaction observed by CryptoCrusaderX therefore fits perfectly into the picture.
Despite all these arguments in favour of cooperation between Ripple and Binance, it should be noted that there have been no official statements to date. Both Ripple and Binance have so far refused to comment on the rumour. In this respect, the news remains a rumour.