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Ripple is set to take 40% stakes of Tranglo, a global cross-border payment hub focused on APAC markets.
This will support rising customer demand in Asia and RippleNet’s On-Demand Liquidity service according to Ripple’s statement.
Initially, new payment corridors will be set up in Southeast Asia and On-Demand Liquidity will become available in the Philippines.
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Crypto network Ripple Labs said on Tuesday it will acquire a 40% stake in cross-border payment hub Tranglo in an effort to strengthen its market presence in the Asia-Pacific region.Tranglo’s infrastructure will support existing payment corridors, as well as enable RippleNet customers in additional countries to use the firm’s On-Demand Liquidity service. “RippleNet customers using ODL will also be able to leverage Ripple’s Line of Credit to free up working capital and scale cross-border payments into more markets than ever before” the company said in a statement. Cross-border payment processing firm Tranglo will support the expansion of the offer in Southeast Asia, starting with the Philippines and then rolling out to other countries, the company said, adding it also offers credit lines to users. RippleNet uses blockchain technology to make cross-border transactions easier. Ripple’s XRP digital token is one of the most widely traded, alongside bitcoin and Ethereum’s ether.
The digital asset market has been gaining momentum in Asia, despite India’s recent ban on bitcoin. Over 30% of cryptocurrency transactions between mid 2019 and mid 2020 took place in Asia, according to a Chainalysis report. “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.” Asheesh Birla, general manager of RippleNet, said. Ripple is currently dealing with legal issues in the US due to its use of the XRP token. The Securities and Exchange Commission said the company had raised $1.3 billion worth of unregistered securities in the form of XRP, which the regulator believes is a security and not a cryptocurrency. Ripple has repeatedly disagreed.