Today, Ripple reveals the plans of buying about 40% stake in a trans-border payment gateway in Asia, Tranglo, as a way of expanding the On-demand Liquidity (ODL) of RippleNet in Southeast Asia.
Despite the lingering litigation that Ripple has with the Securities and Exchange Commission of the United States over the classification of the Ripple’s XRP token, the blockchain-based payment gateway is pushing continually into the Asia market, especially the Southeast region, with its recent announcement of the agreed acquisition of 40% stake in Tranglo – one of the largest Asia’s cross-border payment providers.
Tranglo is a company that provides support for businesses in terms of payment, collection of payments, transfers of money and even mobile top-ups. It has its offices in Jakarta, Kuala Lumpur, Dubai and even London.
Cross-Border Payments and ODL Services got better
The collaboration with Tranglo will help Ripple to respond accurately to the increasing demand in the cross-border payments in the region in question while concurrently expanding the ODL services of the firm. Based on the ODL, Ripple’s XRP is acting as a currency for exchanging two fiat currencies instantly for those that need to send money and wants to reduce the operating capital involved.
Based on the announcement by Ripple, Tranglo will continue to play that pivotal role in providing support to the existing payment gateways in that region and will institute new on-demand liquidity within the existing network.
The collaboration means that existing customers of RippleNet using the ODL service can take advantage of the line of credit provided by Ripple to reduce the working capital needed and push the cross-border exchange into different markets than before.
RippleNet’s general director, Asheesh Birla, said that the payment infrastructure of Tranglo is a very robust one, and that makes them the perfect partner for their intended expansion of the ODL, beginning with Southeast Asia. Much more than anything, Birla said that they are quite excited to advance their mission to transform trans-border payments to be a cheaper, faster and secure adventure leveraging digital assets and blockchain technology.
The CEO of Tranglo, Jacky Lee, also said that their partnership with Ripple is basically to fuel their ambition and mission of providing equitable and accessible financial services to the general public.