Ripple partner Terrapay has announced its intention to bolster its entry into North America with an approved FINTRAC Canada MSB license. This is great news, especially for an industry that is seeing blockchain technology revolutionize, especially since, according to World Bank data for 2018, the value of remittances out of Canada was $ 27 billion.
With Canada among the many countries seeing its share of digital remittances grow, there appears to be a global movement towards cashless economies.
To capitalize on such a dynamic remittance market, Terrapay has announced its MSB registration with the Financial Transactions and Reports Analysis Center of Canada (FINTRAC). The aforementioned license will facilitate the company’s cross-border payments infrastructure to mobilize international remittances from the region in real time and at low cost.
The addition of the FINTRAC license, and thus the Canadian remittance market, will add to the company’s 45 regulatory and local licenses, two billion bank accounts and over 500 million mobile wallets in 100 countries and 58 settlement currencies.
As Canada allows legal use of cryptocurrencies, this is an important move for Terrapay, as it can now potentially use XRP to facilitate cross-border payments.
As Brad Garlinghouse pointed out at the recent Swell Conference, Ripple has a global payment network of over 200 financial institutions. However, only 20% of RippleNet’s transactions are done using XRP.
Terrapay’s Canadian market venture, coupled with its $ 9.6 million investment from Prime Ventures, IFC and Partech to expand into new markets, has fueled speculation that XRP will likely be used in the future.
The granting of the aforementioned license will likely involve huge volumes of international transfers, all acquired by the Ripple Partner Company.