Ripple has declared its intention to buy a 40% stake in Tranglo, an Asian cross-border payments firm.
Ripple claims that since Tranglo’s inception, the payments company has handled over 20 million transactions totaling $4 billion in value. Tranglo, based in Malaysia, facilitates cross-border transactions in a more efficient, cost-effective, and safe manner.
XRP will be used in Southeast Asia as part of the agreement to promote cross-border payments in existing corridors and to implement new On-Demand Liquidity (ODL) ones. Asheesh Birla, the General Manager of RippleNet at Ripple, says:
“Tranglo’s solid payment infrastructure, combined with their unmatched customer support and efficiency, make them a perfect partner to help us grow our On-Demand Liquidity business in Southeast Asia.”
Ripple’s goal is to use blockchain technology and its bridge currency XRP to continue to transform cross-border transactions and make them quicker, cheaper, and more reliable.
Ripple recently recruited Brooks Entwistle, a former Goldman Sachs and Uber executive, as managing director of Southeast Asia.
Ripple wants to make it easier for banks to use CBDCs.
Ripple’s operations in the Asia Pacific area have been booming despite the fintech firm’s current lawsuit in the US for XRP being an uncontrolled security. Ripple is being sued by the US Securities and Exchange Commission for potentially misleading investors with XRP by selling “$1.3 billion in unregistered digital asset securities.”
After the case was filed in December 2020, Ripple’s CEO Brad Garlinghouse says that the company has signed at least 15 new clients. Furthermore, the blockchain company has been actively exploring partnerships with Central Banks around the world in order to learn more about central bank digital currencies (CBDCs). In the future, Ripple hopes to use XRP as a bridge currency to enable the direct exchange of CBDCs on the XRP Ledger.
Ripple revealed at the start of the month that it was experimenting with a private version of its XRP Ledger, which would be used to assist central banks in issuing digital currencies.