Ripple has agreed to acquire a 40% stake in cross-border payments firm Tranglo to further expand its ODL service in Southeast Asia.
Ripple continues its push into the Asian market by acquiring a stake in a cross-border payments firm.
According to a blog post, Ripple has agreed to acquire a 40% stake in cross-border payments firm Tranglo, with the aim to expand RippleNet’s On-Demand Liquidity, or ODL, service that uses the XRP cryptocurrency. The completion of this transaction is subject to regulatory approval, with investment firm TNG Fintech Group remaining the majority shareholder in Tranglo.
The new acquisition is expected to significantly expand Ripple’s ODL corridors with Tranglo’s payments infrastructure. Founded in 2008, Tranglo is a cross-border payment processing hub supporting business payments, money transfers and mobile top-ups. The firm has offices in Malaysia, Indonesia, the United Arab Emirates and the United Kingdom.
Asheesh Birla, general manager of RippleNet, said that the acquisition will “transform cross-border transactions to be faster, cheaper and more secure with blockchain technology and digital assets.”
After the acquisition is completed, Ripple’s managing director of Southeast Asia, Brooks Entwistle, and vice president of product and delivery, Amir Sarhangi, will join Tranglo’s board of directors.
As previously reported by Cointelegraph, the United States Securities and Exchange Commission brought an action against Ripple in late 2020, alleging that the firm violated securities laws by selling XRP tokens since 2013. In early March, CEO Garlinghouse said that the SEC lawsuit did not affect the company’s business in Asia.