Its investment in an Asia-focused cross-border payments specialist aims to address challenges associated with cross-border payments in Southeast Asia's fragmented payments landscape.
Ripple has acquired a 40-percent stake in Tranglo, which will allow the blockchain payments company to meet growing customer demand in the region and expand the reach of on-demand liquidity (ODL), the company announced on Tuesday.
ODL uses digital asset XRP to send money instantly. As Ripple broadens its regional footprint, RippleNet customers using ODL will be able to leverage Ripple's line of credit to free up working capital and scale cross-border payments into more markets, the announcement said.
Important Region
Southeast Asia is the fastest-growing region for RippleNet adoption, according to the company. Tranglo will play a «critical role» in supporting existing corridors, such as the Philippines, and introducing new ODL corridors within its current network.
Founded in Malaysia in 2008, Tranglo operates a cross-border payment hub that provides smart services for mobile airtime top-ups, as well as foreign remittance and business payments.
Following the completion of the transaction, which is expected later this year, Amir Sarhangi, VP of product and delivery at Ripple and Brooks Entwistle, the company's new regional managing director, will join Tranglo's board of directors. TNG Fintech Group will remain the majority shareholder in Tranglo.
