Ripple, a leading provider of enterprise blockchain solutions for global payments, announced today it has agreed to acquire 40 per cent of Tranglo, a Malaysian cross-border payments firm.
As per a press note, the partnership 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.
Furthermore, Tranglo will play a critical role in supporting Ripple’s existing corridors, such as the Philippines, and introducing new ODL corridors within its current network.
Completion of this transaction is subject to regulatory approval and customary closing conditions and is expected to occur in 2021.
As Ripple broadens its footprint in the region, RippleNet customers using ODL will also be able to leverage the blockchain firm’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.
Last week, Ripple appointed Brooks Entwistle as Managing Director for Southeast Asia.
According to Asheesh Birla, General Manager of RippleNet, Tranglo’s payments infrastructure, coupled with its unparalleled customer service, makes it an ideal partner to support its expansion of ODL starting with the Southeast Asia region.
Upon completion of the deal, Amir Sarhangi, VP of Product and Delivery at Ripple, and Entwistle will join Tranglo’s board of directors.
TNG Fintech Group, which acquired Tranglo in 2018 in a US$28-million deal, will remain the majority shareholder.
Ripple allows users to send money globally using blockchain. By joining Ripple’s global network (RippleNet), financial institutions can process their customers’ payments anywhere in the world instantly, reliably and cost-effectively. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets.
With offices in San Francisco, Washington D.C., New York, London, Mumbai, Singapore, São Paulo, Reykjavik and Dubai, Ripple has more than 300 customers around the world.
Founded in 2008, Tranglo is a cross-border payment hub providing business payment, foreign remittance and mobile payment solutions.
Its global network spans more than 100 countries, 2,500 mobile operators, 1,300 banks/wallets and 130,000 cash pickup points.
It has offices in Kuala Lumpur, Singapore, Jakarta, Dubai and London.
In January 202, Tranglo announced a collaboration to facilitate cross-border remittances to users of Alipay, who will be able to receive quick and secure money transfers within the app.
Image Credit: Ripple
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