Ripple may face legal battles, but that hasn’t stalled its expansion plans
Ripple has been arguing with the US Securities and Exchange Commission for several months over the status of their native token, XRP. However, this does not affect his plan to enter the Asian market. Yesterday, the blockchain company announced its plans to expand its operations in Southeast Asia by acquiring 40% of the Malaysian cross-border payment company Tranglo.
Tranglo is one of the most famous companies in Asia involved in cross-border payments. With a 40% stake, Ripple’s presence in the market has received a significant boost. The company already has offices in various locations around the world, including Dubai and London. It mainly focuses on facilitating business payments.
The expansion will go a long way towards helping Ripple advance its cross-border payments and money transfer operations. This is possible because the acquisition opens up new avenues for on-demand liquidity service (ODL). The expansion not only extends the reach of the ODL services, but also enables Ripple to meet the demand for cross-border payments in the region.
Ripple said the move was important, citing the need for standard integration for cross-border payments in the region. The XRP token serves as a link between two fiat currencies and enables instant money transfer.
One section of the announcement read: “The payment traffic landscape in Southeast Asia is very fragmented. Each country has its own process and payment infrastructure – the lack of standard integration for regional cross-border payments currently requires expensive workarounds. “
Ripple revealed that Tranglo’s operations would not change. Rather, the company will continue to play a pivotal role in supporting the current payment corridors.
“As a pioneer in cross-border payment services, Tranglo will play a critical role in supporting existing corridors […] and introduction of new ODL corridors in its current network. “
Speaking of the partnership, Tranglo’s CEO Jacky Lee said the company, with support from Ripple and its on-demand liquidity services, sought to bring fair financial services to the public. From the start, Ripple’s General Manager Asheesh Birla stated that Tranglo was the ideal partner thanks to the company’s robust payment infrastructure and excellent customer service.
The deal has yet to be closed pending regulatory approval, but Ripple is confident it will close this year. Ripple’s Amir Sarhangi and new employee Brooks Entwistle will officially join Tranglo’s Board of Directors once the deal is closed.