Ripple acquires 40% stake in Asian cross-border payments hub Tranglo
By Leandra Monteiro
Ripple, a provider of enterprise blockchain solutions for global payments, announced that it has agreed to acquire 40% of Asian cross-border payments app Tranglo. Through this partnership Ripple will be able to cater to the growing customer demand in the region and expand its reach of On-Demand Liquidity (ODL), which uses the digital asset XRP to send money instantly and reduce working capital needs.
Tranglo will play a critical role in supporting existing corridors, such as the Philippines, and introducing new ODL corridors within its current network. As Ripple broadens its ODL footprint in the region, RippleNet customers using ODL will also be able to leverage Ripple’s Line of Credit to free up working capital and scale cross-border payments into more markets. Tranglo will continue to provide and expand its current payment services to make cross-border transactions faster, cheaper and more secure for its customers.
With a highly fragmented payments landscape, each country in Southeast Asia comes with its own unique process and payments infrastructure. However, the lack of a standard integration for regional cross-border payments currently requires expensive workarounds. This partnership will see both companies combine their local expertise to address the challenges associated with cross-border payments.
Ripple’s investment in Tranglo reflects the company’s deepened commitment to enhancing the payments ecosystem in Southeast Asia, the fastest-growing region for RippleNet adoption. Last week, the company announced Brooks Entwistle as Managing Director of Southeast Asia to lead and scale its SEA operations.
Jacky Lee, Chief Executive Officer at Tranglo said, “Tranglo has always prided itself on making cross-border transactions faster, cheaper and more secure. By partnering closely with Ripple and introducing On-Demand Liquidity to new markets, we aim to further that ambition to provide accessible and equitable financial services to the masses.”
Asheesh Birla, General Manager of RippleNet at Ripple said, “Tranglo’s robust payments infrastructure coupled with their unparalleled customer service and quality makes them an ideal partner to support our expansion of On-Demand Liquidity starting with the Southeast Asia region. We are excited to continue and carry out our shared mission to transform cross-border transactions to be faster, cheaper and more secure with blockchain technology and digital assets.”
Completion of this transaction is subject to regulatory approval and customary closing conditions and is expected to occur in 2021. Upon completion, Amir Sarhangi, VP of Product and Delivery at Ripple, and Brooks Entwistle will join Tranglo’s board of directors. TNG FinTech Group will remain the majority shareholder in Tranglo and will work with Ripple to further expand Tranglo’s global remittances network.
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