The US blockchain technology company Ripple, which is also behind the cryptocurrency XRP, is acquiring a 40 percent stake in the Malaysian cross-border payment company Tranglo as part of its foray into Southeast Asia.
The financial terms of the transaction, which is expected to close this year, were not disclosed.
The deal will help Ripple meet growing customer demand in Asia and expand the reach of its on-demand liquidity service (ODL), the company said in a statement on Tuesday.
The ODL service promotes cross-border payments and enables partner banks or financial service providers to use the XRP coin to transfer funds economically and instantly between different jurisdictions.
“Tranglo’s robust payment infrastructure combined with its unparalleled customer service and quality make it an ideal partner to support our ODL expansion into the Southeast Asia region,” said Asheesh Birla, general manager of RippleNet – a network of banking and monetary services Companies using solutions developed by Ripple.
Founded in 2012, Ripple’s blockchain technology is currently used by hundreds of financial institutions in more than 55 countries.
Tranglo has strived to “make cross-border transactions faster, cheaper and more secure,” said Jacky Lee, general manager of the company.
“By working closely with Ripple and introducing ODL into new markets, we want to encourage this drive to provide accessible and equitable financial services to the masses,” added Lee.
A physical imitation of a Ripple cryptocurrency XRP. AFP
Tranglo was founded in 2008 and has offices in Malaysia, Indonesia, the United Kingdom, the United Arab Emirates and Singapore. The company has more than 1,300 payout partners worldwide and, according to its website, has processed over 20 million transactions valued at $ 4 billion since its inception.
The payments landscape in Southeast Asia is highly fragmented. Each country has its own process and payment infrastructure. The lack of standard integration for regional cross-border payments currently requires expensive workarounds.
Ripple’s investment in Tranglo is expected to solve some of these cross-border payment problems.
“Through this partnership, both companies will combine their in-depth local knowledge to address the challenges associated with cross-border payments,” said Ripple.
Last week, Ripple named Brooks Entwistle, a former executive director of Goldman Sachs and Uber, as executive director for Southeast Asia to lead and grow its regional operations.
In December, the Securities and Exchange Commission sued Ripple and two of its executives, who are also major security holders, for allegedly misleading investors in XRP. They were accused of raising over $ 1.3 billion through an unregistered ongoing digital asset offering.
Published: March 30, 2021 11:41 a.m.