Ripple continues its push into the Asian market by buying a stake in a cross-border payments firm.
According to a blog post, Ripple has agreed to accumulate a 40% stake in cross-border payments firm Tranglo, with the purpose to broaden RippleWeb’s On-Demand Liquidity, or ODL, service that makes use of the XRP cryptocurrency. The completion of this transaction is topic to regulatory approval, with funding firm TNG Fintech Group remaining the bulk shareholder in Tranglo.
The new acquisition is predicted to considerably broaden Ripple’s ODL corridors with Tranglo’s payments infrastructure. Founded in 2008, Tranglo is a cross-border cost processing hub supporting business payments, cash transfers and cellular top-ups. The firm has places of work in Malaysia, Indonesia, the United Arab Emirates and the United Kingdom.
Asheesh Birla, common supervisor of RippleWeb, stated that the acquisition will “transform cross-border transactions to be faster, cheaper and more secure with blockchain technology and digital assets.”
After the acquisition is accomplished, Ripple’s managing director of Southeast Asia, Brooks Entwistle, and vp of product and supply, Amir Sarhangi, will be a part of Tranglo’s board of administrators.
As beforehand reported by Cointelegraph, the United States Securities and Exchange Commission brought an action against Ripple in late 2020, alleging that the firm violated securities legal guidelines by promoting XRP tokens since 2013. In early March, CEO Garlinghouse stated that the SEC lawsuit did not affect the company’s business in Asia.