Blockchain payments firm, Ripple Labs Inc is set to take up a 40% ownership stake in Asia’s cross-border payments firm Tranglo. According to the media reports, the partnership will help Ripple meet up with the product demand from customers in South East Asia as Tranglo will be utilizing its RippleNet’s On-Demand Liquidity (ODL) system to settle cross-border payments using the XRP cryptocurrency.
Per the terms of the partnership, Tranglo will help serve existing ODL corridors in the Philippines while also working to establish more ODL-backed corridors across the region.
RippleNet’s customers born out of this partnership will have access to Ripple’s Line of Credit to the wide array of liquidity demands in payment services provisions.
“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,” says Asheesh Birla, General Manager of RippleNet at Ripple.
The Ripple-Tranglo’s deal is expected to be completed later this year, and while TNG Fintech Group will remain the majority shareholder in Tranglo, Amir Sarhangi, VP of Product and Delivery at Ripple, and Brooks Entwistle, the newly appointed Managing Director of Southeast Asia, will be joining Tranglo’s board of directors.
Ripple Labs Truly Seeing Growth Beyond the United States
The latest deal with Tranglo is a true attestation to the growth of Ripple’s business as noted by Chief Executive Officer, Brad Garlinghouse earlier in the month. Acknowledging the impacts of the ongoing court battle between the company and the United States Securities and Exchange Commission (SEC), Garlinghouse said the firm is seeing organic growth in Asia.
“It (the lawsuit) has hindered activity in the United States, but it has not really impacted what’s going on for us in Asia Pacific,” Garlinghouse said at the time, “We have been able to continue to grow the business in Asia and Japan because we’ve had regulatory clarity in those markets.”
With Tranglo, Ripple Labs Inc aims to continue to cover more payment corridors as it keenly anticipates the end to the damning SEC legal battle in which the markets regulator claimed that the company and its executives were involved in the sale of unregistered XRP securities.
