Ripple Acquiring 40% Stake in Cross-border Payments Company to Expand into Southeast Asia
Through Tranglo, which has partnered with Alipay and WeChat, Ripple aims to meet the demand for its XRP in “the fastest-growing region for RippleNet adoption.”
Ripple has announced a 40% stake in an Asian cross-border payments company, Tranglo, which is still subject to regulatory approval.
This transaction is expected to be completed this year, which will make Amir Sarhangi, VP of Product and Delivery at Ripple and Brooks Entwistle to join Tranglo’s board of directors. TNG Fintech Group, meanwhile, will remain the majority shareholder in Tranglo.
Malaysia-based Tranglo has processed more than 20 million transactions totaling $4 billion in value since its inception.
Last year, Tranglo inked partnerships with Alipay and WeChat to tap into China’s US$17 trillion mobile payments market.
The San Francisco-based fintech startup said on Tuesday that the tie-up would help the company meet the demand for the use of its XRP cryptocurrency in transactions.
“Thrilled to finally announce this one — combining Tranglo’s APAC footprint with RippleNet will create an even better experience for customers who can take advantage of both ODL and Line of Credit!” said Ripple CEO Brad Garlinghouse.
A “Critical” Role to Play
This partnership will help Ripple expand the reach of its On-Demand Liquidity services that use XRP, which is currently trading at $0.0577, up 142% YTD but down more than 80% from its ATH.
Tranglo will play a “critical” role in supporting existing corridors like the Philippines and further introduce new ODL corridors within its current network.
This investment will also help Ripple gain ground in Southeast Asia, “the fastest-growing region for RippleNet adoption,” said the company.
The latest announcement came about a week after former Goldman Sachs, and Uber executive Brooks Entwistle joined Ripple as the managing director of Southeast Asia. Entwistel said in an interview that the company is expanding into new markets in the region to meet “demand for cheaper, faster and more reliable cross-border payments with the use of crypto.”
Ripple and its top two executives, including Garlinghouse, are currently facing a lawsuit by the U.S. Securities and Exchange Commission for allegedly selling unregistered security.
The company is in continuous discussions with the regulators, Entwistle said.