Ripple Labs released a statement on March 29 that they will acquire a 40% stake from Malaysian-based cross-border payment hub Tranglo to expand their markets in the Asia-Pacific region.
According to Ripple’s statement, this partnership with Tranglo will allow the company to meet the growing demand for cross-border payments in the region and expand the reach of its On-Demand Liquidity (ODL). The ODL feature allows crypto users to send XRP coins instantly to a third party without additional costs and red tape from traditional financial institutions.
Through this partnership, Tranglo enables RippleNet users to use the ODL feature on its platform.
‘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,’ Tranglo chief executive officer Jacky Lee said.
‘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 than ever before,’ Ripple stated in their press release.
According to Ripple, Southeast Asia is one of the fastest-growing RippleNet adoption in the continent. By investing in Tranglo, the crypto firm aims to deepen its commitment to improving the payment ecosystem in the 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,’ RippleNet’s general manager Asheesh Birla stated.
Moreover, Ripple Labs mentioned that the partnership will combine both companies’ in-depth local expertise to address the challenges with cross-border payments in the Southeast Asian region.
The partnership announcement came a week after Brooks Entwistle, a former executive of Golden Sachs Group Inc. and Uber Technologies Inc., came on board at Ripple Labs as its new managing director for Southeast Asian operations.
Since 2008, Tranglo has processed over US$20 million in cross-border transactions including foreign remittances and business payments. The company’s global network spans more than 100 countries, 2,500 mobile operators, 1,300 banks and digital wallets, and 130,000 cash pick-up points in the Southeast Asian region.