Ripple has agreed to acquire 40% of Asia’s leading cross-border payment specialist Tranglo. This partnership enables Ripple to meet growing customer demand in the region and expand the reach of RippleNet’s on-demand liquidity service (ODL), which uses the digital asset XRP to send money instantly and reduce the need for working capital .
As a pioneer in cross-border payment services, Tranglo will play a critical role in supporting existing corridors – such as the Philippines – and introducing new ODL corridors into its current network. As Ripple expands its ODL presence in the region, RippleNet customers using ODL can also leverage Ripple’s credit line to free up working capital and scale cross-border payments in more markets than ever before. Tranglo will continue to offer and expand its current payment services to make cross-border transactions faster, cheaper and more secure for its customers.
The payments landscape in Southeast Asia is highly fragmented. Each country has its own process and payment infrastructure. The lack of standard integration for regional cross-border payments currently requires expensive workarounds. As part of this partnership, both companies will pool their in-depth local expertise to tackle the challenges associated with cross-border payments.
Ripple’s investment in Tranglo reflects the company’s increased commitment to payments enrichment in Southeast Asia, the fastest growing region for RippleNet adoption. Last week the company announced Brooks Entwistle as Managing Director for Southeast Asia to lead and scale its SEA operations.
“Tranglo has always prided itself on making cross-border transactions faster, cheaper and more secure. By working closely with Ripple and introducing on-demand liquidity in new markets, we want to encourage this drive to provide accessible and fair financial services to the masses, ”said Jacky Lee, Chief Executive Officer of Tranglo.
“Tranglo’s robust payment infrastructure combined with unparalleled customer service and quality make Tranglo an ideal partner to support our expansion of on-demand liquidity from the Southeast Asia region. We are excited to continue and implement our shared mission to make cross-border transactions with blockchain technology and digital assets faster, cheaper and more secure, ”said Asheesh Birla, General Manager of RippleNet at Ripple.
This transaction is subject to regulatory approval and customary closing conditions and is expected to close in 2021. Upon completion, Amir Sarhangi, VP of Product and Delivery at Ripple, and Brooks Entwistle will join Tranglo’s board of directors. The TNG Fintech Group remains the majority shareholder of Tranglo.
RippleNet leverages distributed ledger technology to deliver financial solutions – from bidirectional messaging, settlement, liquidity management, and credit lines – to a global network of partners. If you are a financial institution interested in joining the network, contact us today.