TL; DR Breakdown
- Ripple is set to acquire a 40 percent stake in Asia’s remittance payment company, Tranglo.
- Under the acquisition, Tranglo will be using ODL to facilitate cross-border transactions.
Ripple, the blockchain payment company behind XRP cryptocurrency, will be expanding its On-Demand Liquidity (ODL) service to the Asian market. According to an announcement on Tuesday, the company has agreed to purchase about a 40 percent stake in Tranglo; a leading cross-border payments company focused on the Asian market.
The development today will further extend the ODL footprint in Asia, which has been the biggest adopters of the service.
Ripple expands its ODL network in Asia
The completion of the acquisition is subject to regulatory approval, according to the announcement. However, it’s expected to be completed sooner this year. Ripple’s agreement to acquire a 40 percent stake in Tranglo comes amid its deepened commitment to improving the payment ecosystem in the region, especially in Southeast Asia. Upon approval, two officials from the blockchain company, namely Amir Sarhangi and Brooks Entwistle, will join the board of directors 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.The CEO at Tranglo, Jacky Lee, commented.
Ripple is positioned to expand its ODL network, and the development goes in accordance with the objective. ODL uses the XRP cryptocurrency. Hence, the expansion and increase in the adoption of ODL would probably drive up more demand for the cryptocurrency, which is presently the seventh-largest digital currency by market capitalization.
XRP made a notable increase some hours after the announcement today. During press time, the cryptocurrency was trading at $0.5774 on Coinmarketcap, accounting for a 3.16 percent increase over the past 24 hours. Also, the market valuation of the entire XRP in circulation is over $26.2 billion.