Ripple Acquires 40% Stake in Tranglo to Expand ODL in Southeast Asia

Ripple Acquires 40% Stake in Tranglo to Expand ODL in Southeast Asia

Ripple, the San Francisco-based blockchain giant, has announced the acquisition of a 40% stake in Tranglo, a cross-border payments leader in Asia. This strategic move aims to expand RippleNet’s On-Demand Liquidity (ODL) services across the Southeast Asian region, utilizing XRP for instant money transfers and minimizing working capital requirements.

Why Tranglo?

Founded in 2008, Tranglo is a prominent player in cross-border payments with an extensive network in over 100 countries. The company operates from major hubs like Kuala Lumpur, Jakarta, Singapore, Dubai, and London, connecting:

• 2,500 Mobile Operators
• 1,300 Banks and Wallets
• 130,000 Cash Collection Points

This partnership will enable Ripple and Tranglo to address Southeast Asia’s fragmented payments ecosystem by integrating their expertise and technology.

Benefits of the Acquisition

Enhancing Payment Corridors

• RippleNet’s ODL service will now have a stronger presence in Southeast Asia, with a focus on existing corridors such as the Philippines.
• Tranglo’s infrastructure will support Ripple’s efforts to establish new ODL corridors, streamlining international transactions.

Ripple’s Line of Credit

RippleNet customers leveraging ODL will gain access to Ripple’s line of credit, freeing up working capital and enabling businesses to scale cross-border payments.

Broader Market Reach

With Tranglo’s established network, RippleNet will be able to expand into additional markets, enhancing the speed and efficiency of international remittances.

Leadership Integration

Pending regulatory approval expected within 2021, Ripple’s leadership will join Tranglo’s board of directors:

• Amir Sarhangi: Ripple’s Vice President of Product and Delivery.
• Brooks Entwistle: Ripple’s Managing Director.

Ripple’s Impact on Southeast Asia

Previous Collaborations

Ripple’s technology is already leveraged in Southeast Asia. For instance, payment provider Azimo uses Ripple’s ODL to process faster international payments into the Philippines.

Tackling Regional Challenges

Southeast Asia’s payments landscape is known for its fragmentation, with varying regulatory frameworks and financial systems. Ripple’s collaboration with Tranglo provides a unified solution to these challenges by offering seamless and cost-effective transactions.

XRP’s Market Reaction

The announcement of Ripple’s stake in Tranglo led to a 5% surge in XRP’s price, with the token crossing $0.585 for the first time since March 22. XRP remains one of the top cryptocurrencies, ranking 7th globally with a market cap of over $26 billion.

XRP Performance in 2021

• Up by approximately 150% since the beginning of 2021.
• Continues to serve as a bridge currency for CBDCs, as highlighted in Ripple’s recent whitepaper on the future of central bank digital currencies.

Conclusion

Ripple’s acquisition of a 40% stake in Tranglo marks a significant step in expanding ODL services and reinforcing its presence in the Southeast Asian market. By leveraging Tranglo’s robust infrastructure and Ripple’s cutting-edge blockchain technology, this partnership aims to revolutionize cross-border payments in the region.

As Ripple continues to innovate and establish partnerships, its vision of building a seamless global payments network is becoming a reality.

To stay updated on the latest developments in blockchain and cryptocurrency, explore our article on latest news, where we delve into groundbreaking ventures shaping the future of finance.