As part of its quest to expand into Southeast Asia, Ripple, the US-based cross-border payment firm, has announced its plan to acquire a 40% stake in Asian cross-border payment giant, Tranglo, as part of its expansion of RippleNet’s On-Demand Liquidity (ODL) that uses the digital token XRP.
Why Ripple Chooses Tranglo
According to Ripple, the significance of Tranglo in the cross-border payment industry is the major reason behind the acquisition. Ripple believes that the firm will play a very important role in supporting existing corridors, such as the Philippines, Australia, among others, by introducing new ODL corridors within its current corridor.
Going by the report, this new development now enables RippleNet customers using ODL in the region to leverage Ripple’s Line of Credit to “free up working capital and scale cross-border payments into more markets than ever before.”
“Tranglo will continue to provide and expand its current payment services to make cross-border transactions faster, cheaper, and more secure for its customers,” the report added.
Reacting to the new development, 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.”
Jacky Lee, Chief Executive Officer at Tranglo, also stated that “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,” explains Jacky Lee, Chief Executive Officer at Tranglo.”
In conclusion, the payment firm pointed out that the acquisition will become formal after its regulatory approval and customary closing conditions, which are expected to play out this year.