Urgent ODL demand in Brazil led to Modiax integration

by | Apr 27, 2021

From a small start-up with a dozen employees, Ripple has grown to become a global company, with 500 employees across 9 global offices. Despite its large number of employees, Ripple has often acquired other companies like Algrim or Strata Labs or hired other companies to complete specific tasks.

Moove It

One such partnership was with Moove It, a leading software development company headquartered in Texas, with offices in San Francisco & Austin (US), Cali (Colombia), and Montevideo (Uruguay). Moove It designs, develops, and deploys custom solutions for organizations.

According to Moove It, Ripple has grown rapidly in the last few years, surpassing 1000 Banks and FIs using its service.

Note: Moove It has now clarified that the number 1000 shown on its website was incorrect.

The last official Ripple announcement regarding the number of customers it had was in November 2019, at Swell. Ripple then announced 300+ customers but no update has been given since then.

Almost a year later, in October 2020, Ripple changed the customer metrics on its website from 300+ to 3X YOY customer growth.

Regardless of the number of clients, Ripple has had explosive growth, which led the company to hire Moove It on a one-year project.

Such explosive growth pushed the capacity of Ripple’s software development team to its limits. In order to meet this challenge, Ripple partnered with Moove It for a one year project focused on collaborating with its own team to develop integrations for new cryptocurrency exchanges and to help standardize its testing platform.

A Moove It team composed of Java organization members that specialize in fintech and systems integration joined the Ripple software development team with the goal of addressing an urgent market demand to add Brazil as a money transfer destination. Bearing in mind that the partnership started in September 2019, this means that Ripple probably met with the Central Bank of Brazil after the integration was completed.

According to Moove It, integrating a new destination into the Ripple network entailed solving complex business and technology challenges. It included searching for a good crypto exchange fit, performing a feasibility study to assess the gap between the exchange’s API and Ripple’s requirements, analyzing risks, going through a negotiation process with the crypto exchange, developing a systems integration plan, and if everything worked out and lined up, developing the project.

Indeed, in six months Moove It not only helped integrate a Brazilian exchange into the Ripple network (Modiax) but also an exchange for the Philippines (coins.ph), and Australia (BTC Markets).

After an initial six-month engagement, Ripple decided to extend the terms for another six months in order for Moove It to use Java to build a testing platform designed to standardize automated testing across the Ripple network. The testing platform loads a Ripple network example in a testing environment that is utilized by the different services in order to test transactions and to verify that they process as expected.

Modiax – Foxbit

Coins.ph was one of the first ODL exchanges announced by Ripple back in August 2019 while BTC Markets was revealed as an ODL exchange back in November 2019 during Swell, Ripple’s annual conference. During Swell, there was talk that Brazil was soon to go live on ODL as well, but there was little to no indication as to which exchange was going to facilitate those transactions.

Up until today. Modiax seemed to be the preferred exchange for ODL and was integrated, however it was deactivated a month ago, on March 28th, 2021. But why is that?

Foxbit acquisition

Modiax was acquired by Foxbit, another Brazilian exchange, in November 2019. The acquisition aimed to solidify Foxbit’s market position, expand its services portfolio and offer a better investment experience.

Modiax’s closure was a move in line with the acquisition by Foxbit. The change enabled the joining of two teams but also the joining of forces working together with the objective of evolving the platform and service at the level requested by their customers.

Is Foxbit Ripple’s ODL exchange for Brazil? Did Modiax’s integration from Moove It begin before or after its acquisition from Foxbit?

Even though Moove It does not mention when it worked with Ripple to integrate the three exchanges onto Ripplenet, we do know that the partnership lasted for a year. The first sign of the partnership was a tweet on September 17th, 2019, a few months prior to the acquisition.

A LinkedIn profile of a Moove It employee confirms that the integration started in September 2019 and ended in July 2020.

So, Modiax’s integration as an ODL exchange probably started prior to its acquisition from Foxbit.

However, Foxbit received 2.3 million XRP from a Ripple wallet in March 2020. The same wallet has sent XRP to the following exchanges: Bistamp (ODL), Bitso (ODL), Bitkub (ODL), VALR (ODL), PDAX (Ripple partner), and BTC Markets (ODL). All confirmed ODL exchanges and Ripple partners.

Foxbit has not replied to our inquiries, to confirm if it is indeed an ODL partner exchange but if they do, we will update the story.

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