Ripple has agreed to acquire a 40% stake in cross-border payments Fintech Tranglo, according to a public release. Tranglo, based in Malaysia but operates across Asia, reports 1300 partners having completed 20 million transactions at $4 billion in value. Tranglo claims to be one of Asia’s leading cross-border payment hubs that offer airtime top-ups as well also foreign remittance and business payments.
The company states that the partnership with Ripple will enable it to “meet growing customer demand in the region and expand the reach of On-Demand Liquidity (ODL), which uses the digital asset XRP to send money instantly and reduce working capital needs.”
Ripple expects to broaden its ODL footprint in the region and will allow customers using ODL to leverage Ripple’s Line of Credit to free up working capital and scale cross-border payments. Tranglo expects to continue to provide and expand its current payment services to make cross-border transactions faster and cheaper.
Ripple’s investment in Tranglo is described as a reflection of the company’s commitment to enriching the payments ecosystem in Southeast Asia.
Tranglo CEO Jacky Lee, stated:
“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.”
Asheesh Birla, General Manager of RippleNet at Ripple said that Tranglo’s robust payments infrastructure coupled with their customer service and quality makes them an ideal partner to support their 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.”
Completion of the transaction is subject to regulatory approval and closing conditions and is expected to occur in 2021.
Upon completion, Amir Sarhangi, VP of Product and Delivery at Ripple, and Brooks Entwistle will join Tranglo’s board of directors. TNG Fintech Group will remain the majority shareholder in Tranglo and plans to work with Ripple to further expand Tranglo’s global remittances network.
Ripple previously announced Line of Credit, a service on RippleNet that allows customers using On-Demand Liquidity to source capital on-demand to initiate cross-border payments at scale using the digital asset XRP.
Ripple is currently in the midst of a legal battle with the US Securities and Exchange Commission that has filed an enforcement action alleging the issuance of unregistered securities.