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Jacky Lee, the Chief Executive Officer of Tranglo, said that the partnership with Ripple Labs will go a long way to ensure that accessible and equitable financial services are delivered.
Ripple Labs is still making active development across its services with the latest report mentioning another large move in the Asian market. According to the announcement, Ripple Labs has acquired a 40% stake in Tranglo Sdn. Bhd., one of the biggest cross-border payment services in Asia.
Tranglo specializes in transferring payments to both individuals and businesses across the globe, and with a special interest in that function, Ripple Labs believes that this can be the catalyst to promote and increase the RippleNet On-Demand Liquidity Service which makes use of the native currency, XRP to make transactions instant and cheaper. This development is meant to ensure that the growing demand of their customer base in Southeast Asia is met.
Jacky Lee, the Chief Executive Officer of Tranglo in a statement said that the partnership with Ripple Labs will go a long way to ensure that accessible and equitable financial services are delivered.
“By partnering closely with Ripple and introducing On-Demand Liquidity to new markets, we aim … to provide accessible and equitable financial services to the masses,” he said.
Tranglo has a lot of similarities with the Ripple Labs in terms of cross-border transactions. Both companies ensure that cross-border transactions are cheaper, faster, and more secure. Asheesh Birla, the General Manager of RippleNet disclosed that their decision to acquire a 40% stake in Tranglo lies in their track record and their ability to Implement a successful robust payment infrastructure and effective customer service satisfaction. There is a strong expectation that these abilities can aid their expansion of On-Demand Liquidity.
The deal has not been completed yet, pending regulatory approval and customary closing conditions. It is expected that this will be finalized this year, and upon completion, Tranglo’s board of directors will have new members as a seat would be provided for the VP of Product and Delivery Service at Ripple, Amir Sarhangi. Also, TNG Fintech Group will be the largest shareholder of the company.
The announcement recognizes the challenges imposed by the payment industry of southeast Asia. Every country in the region has a different process and payment infrastructure. This unexisting standard integration of cross-border transactions in the region makes it costly to implement any development that focuses on the entire region. However, they believe that they can combine their technical abilities to offset these challenges.
As part of its role in the deal, Tranglo will be responsible for supporting the existing corridors and ensure that new On-Demand Liquidity corridors are added into its circle. The RippleNet customers according to the report will have the ability to leverage Ripple’s Line of Credit when the On-Demand Liquidity of the region is broadened. Tranglo will go ahead with its services to promote and ensure that cross-border transfers are made cheaper, faster, and secured.