The San Francisco-based blockchain firm, Ripple, announced that it had acquired a 40% stake in Tranglo, an Asian cross-border payments pioneer. It intends to expand Ripplenet’s On-Demand Liquidity (ODL) in Southeast Asia via this acquisition. As per the official declaration, Ripple strives to develop its services in Asia. The recent acquisition will significantly support the company’s existing corridors, like the Philippines. RippleNet’s On-Demand Liquidity (ODL) service employs cryptocurrency XRP to instantly transfer money and decrease working capital needs.
Established in 2008, Tranglo is a cross-border payment hub with a substantial presence in the Southeast Asia region. The company has offices in Kuala Lumpur, Jakarta, Singapore, Dubai, and London. It has a global network across over 100 countries, 2,500 mobile operators, 1,300 banks/wallets, and 130,000 cash collection points. This contract between Ripple and Tranglo will help the respective platforms integrate their expertise to discuss Southeast Asia’s profoundly fragmented payments landscape.
Ripplenet Consumers Leveraging ODL can use Ripple’s Line of Credit.
Ripple contends that Tranglo will play a fundamental role in supporting existing payment corridors in the region. It will launch new ODL corridors in its current network. The collaboration also implies that Ripplenet consumers utilizing ODL will be capable of leveraging Ripple’s line of credit. It will help to free up working capital and scale cross-border payments into more markets than before.
After the regulatory approval of this partnership, Amir Sarhangi, Vice President of Product and Delivery at Ripple, and Ripple’s Managing Director Brooks Entwistle will join Tranglo’s board of directors. The regulatory approval may come within 2021. Moreover, Trango won’t be the first platform leveraging Ripplenet for its services in this region. Earlier, Azimo commenced accepting Ripple’s On-Demand Liquidity for more active international payments into the Philippines.
Furthermore, as per the data published by Coinmarketcap, XRP is the 7th biggest cryptocurrency in the world, with a market cap of over $26 billion. The most advanced announcement prompted a 5% jump in the price of XRP. The digital asset surged over $0.585 for the first time since 22 March. XRP is now up by about 150% after the start of 2021. Moreover, Ripple also recently issued a whitepaper on the future of CBDCs (central bank digital currencies) and described XRP as a bridge currency for CBDCs.
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