Ripple, the enterprise blockchain solutions for global payments, has acquired 40% of Tranglo, the cross-border payments specialist frim which recently launched in Nigeria, Ghana and Uganda to power digital wallets, instant banking and cash pickups.
Tranglo, a Malaysian cross-border payments says the deal will allow Ripple to meet growing customer demand in the region and expand the reach of On-Demand Liquidity (ODL), which uses the digital asset XRP to send money instantly and reduce working capital needs.
According to Jacky Lee, Chief Executive Officer at Tranglo: “Tranglo has always prided itself on making cross-border transactions faster, cheaper and more secure. By partnering closely with Ripple and introducing On-Demand Liquidity to new markets, we aim to further that ambition to provide accessible and equitable financial services to the masses.”
Tranglo’s new payment corridors — Nigeria, Ghana, Uganda and Brazil will play a critical role in supporting existing corridors, such as the Philippines, and introducing new ODL corridors within its current network. As Ripple broadens its ODL footprint in the region, 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. Tranglo will continue to provide and expand its current payment services to make cross-border transactions faster, cheaper and more secure for its customers.
Southeast Asia’s payments landscape is highly fragmented. Each country comes with its own unique process and payments infrastructure – the lack of a standard integration for regional cross-border payments currently requires expensive workarounds. This partnership will see both companies combine their in-depth local expertise to address the challenges associated with cross-border payments.
Ripple’s investment in Tranglo is a reflection of the company’s deepened commitment to enriching the payments ecosystem in Southeast Asia, the fastest-growing region for RippleNet adoption. Last week, the company announced Brooks Entwistle as Managing Director of Southeast Asia to lead and scale its SEA operations.
Asheesh Birla, General Manager of RippleNet at Ripple said: “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.”
Upon completion, Amir Sarhangi, VP of Product and Delivery at Ripple, and Brooks Entwistle will join Tranglo’s board of directors. TNG Fintech Group will remain the majority shareholder in Tranglo and will work with Ripple to further expand Tranglo’s global remittances network.
RippleNet leverages distributed ledger technology to deliver financial solutions – from bi-directional messaging, settlement, liquidity management and lines of credit – to a global network of partners. Last year, Ripple announced Line of Credit, a service on RippleNet that allows customers using On-Demand Liquidity (ODL) to source capital on-demand to initiate cross-border payments at scale using the digital asset XRP.